What is a Void Cheque and How Does it Work?
Voided checks reveal crucial banking information that if not shredded or disposed off properly can serve as linchpin to more dangerous scams. Voiding a check may be useful if you intend to schedule electronic payments. This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.
How long should I keep a record of voided checks?
- The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs.
- If your online banking portal does not offer this option, you can also ask your bank for one at your local branch.
- Take a blank cheque from your checkbook and write VOID across the front of it.
- For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.
It’s a check that has been intentionally voided to ensure that it can never be cashed. Lauren is a personal finance writer with over a decade of experience helping readers make informed money decisions. She holds a Bachelor’s degree in Japanese from Georgetown University. Let’s say you intended to write a $50 check, but mistakenly added an extra zero, making it $500. To prevent the check from being processed for the wrong amount, you void it by writing “VOID” on top of the written voided cheque meaning amount.
What is a void cheque?
If you don’t have cheques on hand that you can void, you have some options. If you do not have a checkbook, the process of getting checks, voiding them and providing it to the employer for direct deposit can be difficult compared to the available alternatives. For example, if you are in business and your suppliers prefer to be paid electronically, then a voided check may be part of setting up automatic payments. If you don’t have any checks, and you want to set up a direct deposit or automatic electronic payment, there are other ways to do so. A voided check can be useful for providing the necessary information for certain electronic payments, such as direct debits. If you prefer the convenience that online banking provides, then check out Wise.
Doing so will block the bank from honoring the check when the payee presents it. In order to send the correct information to the bank to stop payment, you will need to extract the requisite information from either a copy of the check or the check register. If you’ve been handling your finances for some time, chances are you’ve seen a personal check with the word “VOID” written boldly across the front.
Banking
In most cases, this includes the bank, bank address, account number, routing number, and the account holder’s name and address tied to the account. Instead, a void cheque is a physical check with the word “void” written across the face. That said, a void cheque is often requested when registering a new direct deposit as it ensures that the account information is copied verbatim. Direct deposit eliminates the need for you to receive a paper paycheck and often allows the money to be deposited into your bank account faster.
If the check is not currently in the company’s possession, then contact the bank and authorize a stop payment on the check (for which the bank will charge a fee). If you write “Void” on a check, always use ink; someone could erase a “Void” mark made with a pencil and then try to cash the check. A voided check will have all of your bank information printed on it, so it can provide others everything they need to set up a direct deposit payment from your account.
Make sure you use a black or blue pen with permanent ink, and if you have a duplicate check, do the same for that copy. Most companies don’t even need an original; a copy of a voided check is good enough. It’s typically written in large letters so there’s no chance of it accidentally being used. A voided check is a check written or partially written but then canceled or deleted by the maker of the check. In many instances, voiding a check is necessary for bank account verification, which involves providing a check specimen in order to confirm account information.
She writes about personal finance topics, such as investing, insurance, credit cards, and real estate. These three numbers are found on the bottom of every cheque and tell the receiver the information they need from the void cheque. You should not give anyone a blank check because they can fill it out and withdraw money from your account. However, the employer needs your banking information to get the process started. When you void a check by writing the word ‘VOID’ across its front in capital letters, there is no chance it will be used accidentally.
Void cheques aren’t used as often as they were in the past, but you may still encounter them from time to time so it’s essential to know the basics. Here’s everything you need to know about what a void cheque is, what it’s used for, and more. Discover what FDIC insurance is, its limits, and the types of accounts it covers. If you’re tired of dealing with paper checks and keeping records, Wise can help you manage your money electronically. To do that, you’ll have to write the word ‘VOID’ in capital letters going across the front of the check.
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A voided check is simply a check that has the word VOID handwritten or printed on it. When a check has the word VOID printed across it, it’s rendered unfit for any transactions. This is the reason banks will request a void check rather than a blank one, i.e., to make sure it can’t be used. The most common use for a voided check is to establish a direct deposit¹. If you’re going to receive payments from an employer electronically, you can send them a voided check, so they have all of your bank information.
Voided check definition
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- This indicates that the check has been voided intentionally, which means it can no longer be used for payment.
- If you need a voided check to set up direct deposit with your employer, you have a couple of choices.
- Discover what FDIC insurance is, its limits, and the types of accounts it covers.
Doing so also minimizes the chances of numbers being transposed or other issues arising when it’s time for the payment to be processed. A direct deposit is a way that government institutions, employers, and other agencies pay their workers electronically, using your bank account details. It’s a cost-effective and straightforward approach, which only requires your routing number and bank account number. Because of this, you’ll need to hand over a voided check to supply this information.
The banking information necessary to start the direct deposit is the account and routing numbers. You can open a Wise account and receive money from around the world with local bank details. If you don’t have a paper check, you can always go to your nearest bank branch and request a voided check. All you need to do if you want to establish a direct deposit is take an existing check and write the word ‘VOID’ across the front of it in large capital letters. Once you have a voided cheque, simply fill out any required information and give it to the appropriate person, and they will handle the rest. A cheque is a document that instructs a bank to transfer funds from a person’s account to the person to whose name the cheque is issued.
Therefore, when you give your banking information to another person for legitimate use, you can use a voided check. This is because you can make a mistake while copying the details on the check. Electronic money, or e-money, is a simple way to send, spend, and receive payments online.
This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. A voided check is simply a paper check with the word “VOID” written across it, often in big letters, indicating without a doubt that it shouldn’t be used for making a payment.
Learn more about how we review products and read our advertiser disclosure for how we make money. Discover how APY impacts your financial choices and maximizes your savings. If you add one too many ‘0s’ to your check, you can’t just correct it and hope it works out.