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What is a voided check?

voided check means

You’ll want to write it in letters that are large enough for anyone to read, and you’ll want to write in a large, thick pen, if possible. While owning a checkbook and writing checks to many people might seem a bit outdated, there are still plenty who prefer this method. In a computerized accounting system, there voided check means is usually a menu option for voiding a check, since this is a sufficiently common activity to warrant having its own routine. 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 with the word “VOID” across it, which indicates that it shouldn’t be used for payment. It’s typically written in large letters, so it cannot be mistaken for cash use. Voiding a check prevents the check from being used by anyone, especially thieves who could write a large sum of money out to themselves. Typically, a voided check is used to get information needed for electronic payments because it includes details such as your routing number, account number, and check number.

Money

Employers usually ask for a voided check as a simple way to collect your banking information for direct deposit. 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.

In this case, it would make sense to void the check and toss it to prevent fraud from occurring. Voiding a check is simple, but it’s important to follow the steps correctly to ensure your check is considered void. All you need is a check and a blue or black pen — ideally, one that produces a nice, thick line that’s impossible to miss. Invested Media LLC may have financial relationships with the companies mentioned or seen on this site.

What Is a Canceled Check?

Fortunately, it only takes a few minutes to void a check and you won’t spend a dime. All you have to do is grab a black pen or marker, write “VOID” using all capital letters, and you’re all set. Offer pros and cons are determined by our editorial team, based on independent research.

  • Although it might sound complicated, voiding a check is actually quite easy.
  • You want to make it difficult for thieves to erase or cover your void mark.
  • This isn’t the best possible option, but it will provide you with the relevant bank information.
  • You’ll have to sign an agreement that authorizes automatic payments.
  • If you need a Stop Payment Order for a check, your bank will probably need the information on the check you want to cancel.
  • That is now rare, and most check writers receive scanned copies of their canceled checks, while the banks create digital copies for safekeeping.
  • If you want to avoid writing checks for mortgage, rent, and insurance, you can use a voided check to set up automatic electronic payments.

Writing “Void” across it prevents someone from using the check to falsely extract money from the person’s checking account. 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.

Do I sign a voided check?

If you happen to need a blank voided check solely for information purposes but don’t have one at your disposal, don’t panic. Ask the requester if they’ll accept a deposit slip or letter from the bank containing your account information in its place. If not, your bank may be willing to issue you what’s referred to as a counter https://www.bookstime.com/ check. The thought of writing a check may seem a bit archaic, but there are still many that use personal checks at the point of sale to make purchases. Furthermore, some have no problem writing checks each month, heading to the post office, and mailing them off to their lenders and service providers to cover bills.

  • If you think you may need evidence of the voided check later—such as for tax purposes—you can scan it or use your phone to take a picture.
  • Today, nearly all checks are cleared through the Federal Reserve Banking system electronically even in cases when the deposit is a paper check.
  • Yet another use for a voided check is when a lender wants to use it to set up an automated loan payment.
  • By simply providing your account details you should be able to set up a direct deposit quite easily without a voided check.

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