A “Stop Payment” occurs when a consumer writes a check for services and subsequently informs their bank to cancel payment to the merchant. 

Let us say that the Hyatt Hotel at the Los Angeles Airport is holding a banquet for a group of real estate agents from Century 21 Realty.  The hotel is using the CrossCheck program of “Pre-Authorization” because the real estate company wants to pay the hotel by company check.  The manager of the real estate office is put in charge of the event.  They order 100 dinners.  When everybody arrives, the real estate manager informs the hotel that some attendees could not make it at the last minute.  There are only 80 people in attendance for the dinner.  The hotel informs the real estate manager that banquet orders are different than restaurant orders in that the food is all prepared ahead of time. 

Regretfully, Century 21 will be charged for 100 dinners.  The hotel presents the real estate manager with the bill for the 100 dinners.  She pays the hotel.  The next day she puts a “Stop Payment” on the company check she wrote.  This is how she decided to “handle the matter”. 

The good news for the hotel is that CrossCheck will pay the hotel because they have signed up for CrossCheck’s “Stop Payment” program.  The “Stop Payment” program of CrossCheck can always be used with any of their Premium Features such as “Pre-Authorization”.   Another food and beverage profit center for hotels in their restaurants. 

CrossCheck has a competitive advantage in a restaurant situation because of their “automatic approval” system which is called a Floor Plan.  Under the Floor Plan every check under $100 for restaurants is automatically approved.  Yet; it is certainly possible for a customer to put a “Stop Payment” on a restaurant check because they felt the person serving them their food was rude, or their food was ill prepared. 

Again, CrossCheck will cover all situations where a hotel has subscribed to the “Stop Payment” program of CrossCheck. 

Let’s say that a guest pays by check for their hotel room.  Then, they put a “Stop Payment” on the check because they say that the heater in their room did not work properly, and they did not get a good night’s sleep.  The hotel is paid without the need to fill out a claim form.