Use a pen or marker that is bold and dark enough so that the writing is visible. No one should be able to erase the wording on a properly voided check. A voided check may be perforated with a “Void” stamp, or crossed out, or have “Void” written across it, be shredded, or simply be stored in a voided checks file. It is best to permanently deface or destroy a voided check, so that no one can present it to a bank at a later date and expect to be paid for it. 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.
- But if you aren’t active online for your finances or feel uncomfortable with that, then a voided check will work too.
- In a computerized accounting system, there is usually a menu option for voiding a check, since this is a sufficiently common activity to warrant having its own routine.
- Understand the key differences between APR and APY, and how they affect your savings accounts, CDs, and even crypto investments.
- Voiding a check can be a key step in setting up financial transitions like regular payroll direct deposits.
- Conveniently make your loan payment with a debit card or electronic check!
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That is now rare, and most check writers receive scanned copies of their canceled checks, while the banks create digital copies for safekeeping. One small business owner experienced the importance of voided checks. He found a difference in his records one day and noticed an unapproved transaction. Luckily, he had a voided check to prove the fraudulent activity and get the funds back fast. Voided checks originated from ancient times when transactions were done with coins, stones or shells. To stop misuse or duplicate payments, individuals would “void” these mediums after the transaction.
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There are several options, but the first step is to endorse the check. To endorse a check, flip it over and sign your name at the top on the short side of the check. 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. All this means is that the check is now invalidated and can’t be deposited or cashed by the intended recipient. It may or may not have other information filled in throughout the check.
- In this case, the owner provides the supplier with a voided check where the required data is visible but at the same time avoids any misapplication.
- Instead, a special scanner creates a digital impression of the front and back of the check, which it sends to the other bank.
- Once you set everything up, the amount will be deducted from your bank account each month automatically.
Another use for a voided check is to set up direct deposit payments, usually for payroll payments from your employer into your checking account. The employer needs a voided check in order to extract the bank account information from the bottom line of the check. Yet another use for a voided check is when a lender wants to use it to set up an automated loan payment.
Voided check alternatives
Voided checks can serve an important role in direct deposits and other ongoing transactions. Today, nearly all checks are cleared through the Federal Reserve Banking system electronically even in cases when the deposit is a paper check. The deposit and check clearing process is still performed, but the paper check almost never leaves the facility where it is deposited. Voiding a check means it can’t be used to make a payment or withdraw money from your checking account.
If the employer has to read your handwriting, perhaps it’s not perfect and a mistake is made when entering the information. 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 amount.
The word “Void” should stand out from the pre-printed information on the check, so it’s clear to anyone that the check’s invalid. Voiding a check may seem as simple as just writing “void” across the front. By asking you for a check, your employer reduces the potential for errors. If you have to fill out a form, it’s possible you’ll make a mistake.
What Is A Voided Check? Everything You Need to Know
Your paper checks all have your bank information on them—the name of your bank or credit union and your account and routing number. By giving a voided check, you give the person establishing the link to the bank account information they need to set up your direct deposit. Many employers ask their employees to submit a voided check in order to set up payroll direct deposit.
Voided checks may not be as popular as they once were, but it’s still important to know how to void a check, what they look like, and what their purpose is. Always remember to keep track of any checks you void out to prevent identity theft or fraud. Instead of trying to correct the error you may have made on a check, it’s better and safer to cancel the check completely by voiding it. Sometimes writing a check is easier if you are not comfortable with managing your finances all online or using apps. Grasp the meaning of APY in banking and CDs with our in-depth guide. Discover how APY impacts your financial choices and maximizes your savings.
Voiding a Check for Direct Deposits
As long as the information is copied adequately and the recipient says it’s fine. Otherwise a voided check or copy of a check will generally be the ideal method. Grab a check out of your checkbook, and write “void” across the front. Write with well-spaced letters that are tall and wide enough to cover the whole face of the check without obscuring the banking information at the bottom. You want to make it difficult for thieves to erase or cover your void mark.
Once a check has been voided, it’s no longer usable as a form of tender. No matter who the check was written out to or how much it might be written for, the check can no longer be presented to a bank or credit union for payment. You may also need to send a voided check if you need to sell up automatic bill payments or regular investment contributions. Electronic money, or e-money, is a simple way to send, spend, and receive payments online. As we start to move away from cash or checks, e-money transfers are… Your last option is to gather all your bank account information in one place so that you can fill out a form for your employer to set up a direct deposit.
And in such cases, the mistake may not be noticed until the check is returned to your bank or rejected by the recipient’s bank, causing the check to bounce. Rather than figuring out the process as it comes up, learn everything you need to know about voiding a check now so that you’re fully prepared in the future. Crediful is committed to helping you make smarter financial decisions by presenting you with the best information possible. We are able to present this information to you free of charge because some of the companies featured on our site compensate us.
Basically, a voided check is one that has been annulled, making it useless for banking transactions. Generally, “VOID” is written in bold on voided checks, showing banks and vendors not to approve or process it. On the other hand, checks are also voided to provide banking information to employers when a person is enrolling at a new company.
As paper checks become less common in banking, organizations that normally require a voided check may be more receptive to another method. Try those first and you avoid the risk of your sensitive financial information falling into the wrong hands. Whatever you do, never sign a voided check or write any additional information in the blank spaces provided. The purpose of a voided check is to provide your bank name, routing number, and personal account number. If you happen to need a blank voided check solely for information purposes but don’t have one at your disposal, don’t panic.
