voided check means

While certain people may be concerned over the safety of voided checks, no financial institution will cash or deposit a check that has the term “void” on its face. This is because the paying bank will not release funds for the check after completing the voided check means bank transaction validation process. Instead, the voided check can be used to establish a direct deposit or bill pay. Establishing direct deposit or online bill pay eliminates the hassle of going to the bank to make payments or deposit your paycheck.

Voiding a check basically means you’re canceling it so it can’t be used to make a payment or withdraw money from your account. With direct deposit, you can use the money in your account immediately since there’s no temporary hold on deposits. If you are writing a check and make a mistake, you can write “VOID” across it, so no one uses or deposits it.

Example of a Voided Check

Instead of voiding a check and submitting it through a form, you can now set up your direct deposit or automatic payment through their online system. A voided check is a check that can no longer be accepted as payment from anyone. It has the word “VOID” written across it and therefore is not a blank check either. A voided check will still have your account details on it but it cannot be used to process any payment. If you already sent a check to someone, then it is not possible to void it.

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. Depending on how your employer sets up direct deposit, you might have the option to connect directly to your bank account through your company’s payroll website.

How Do I Get a Void Check Online?

•   A voided check is used to establish direct deposit or bill pay and is not used for deposit or cashing purposes. For that reason, voided checks should never be provided lightly. They should be given only to individuals who are both trusted and necessary in your life. If any person or organization requests a voided check, be prepared to question them about the exact purpose. Unless it’s one of the usual reasons, you should never provide a voided check to anyone. Whatever you do, never sign a voided check or write any additional information in the blank spaces provided.

14. července 2023 Bookkeeping

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What Is a Voided Check and How to Void a Check?
 

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