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. This eliminates any risk of losing funds from your account because no one else can use the check to withdraw funds. Alternatively, the word can be written on other check parts, such as the payee line, dateline and amount box. Learn more about how we review products and read our advertiser disclosure for how we make money. We’ve put together a list of the best banks that don’t use ChexSystems or require a credit check. Just make sure whatever you provide matches the information the company is requesting.
Can you get a single voided check from the bank?
If the check is for someone else, don’t hand over a partially completed check—void it first to protect your info. You can detach a check from your supply and write ‘VOID’ across its front. The word does not have to cover the entire face of the check, but it should be big enough so no one else can use it. This is because they contain the vital information necessary to initiate the transfers.
Security and Record Keeping
It’s a good practice to keep a record of voided checks for at least one year to ensure you have a clear financial trail for tax purposes or to resolve any disputes that may arise. Some financial advisors suggest keeping all bank records, including voided checks, for up to seven years, consistent with the period for which the IRS recommends retaining tax documents. Many employers ask for a voided check when setting up your direct deposit. It gives them the routing and account number they need to deposit your paycheck straight into your account.
Common Uses for Voided Checks
- Similarly, establishing automatic bill payments often necessitates a voided check.
- The process is fairly straightforward, but it’s important that you do it carefully to avoid someone using your check fraudulently.
- The primary reason is to provide your bank account number and routing number securely when you’re setting up electronic transactions like direct deposit from your employer or automatic bill payments.
- If you want to be extra careful, you might write “Void” across the payee line, as well as on the signature line and in the payment box.
- Voiding a check may be useful if you intend to schedule electronic payments.
- As long as you handle them carefully, keep your details secure, and know when and why to use them, you’ll find that the humble voided cheque can make your financial life a whole lot smoother.
Additionally, deposit slips for your account will also contain both your routing and account numbers. Some suggest writing “VOID” in multiple places, such as across the payee line, amount box, and signature line, to further prevent misuse. Do not sign or tear the check, as the banking details need to be intact for verification. 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 voided check definition 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.
Why Not Just Share My Banking Details Online?
Voiding a check may be useful if you intend to schedule electronic payments. However, the employer needs your banking information to get the process started. The banking product interest rates, including savings, CDs, and money market, are accurate as of this date. She issued a check at the beginning with the total forecasted amount and kept it during three weeks. However, the final amount charged by the contractor was 5% lower due to some changes introduced in the process. Mrs. Schneider then voided the check and provided the worker with another check correctly filled.
- While digital transactions are increasingly common, checks continue to serve various financial purposes.
- Use a pen with dark, permanent ink, such as blue or black, to write “VOID” in large, clear letters across the front of the check.
- This helps reduce errors that might occur if the numbers were simply transcribed.
What to Do After Voiding a Check
Keeping a copy of the check and using permanent ink are both about security. And there are a few more things you can do to make sure you’re not exposing yourself to fraud. Let’s start with the basics of what a voided check is and why it could matter to you.
Always check what format is acceptable for your employer, billing agency, or landlord before providing any sensitive information. Deposit slipIn some cases, a pre-printed deposit slip might be accepted, as it also contains your account number and sometimes the routing number. However, this is less common, as not all deposit slips have the routing number.
This method offers a reliable way to share sensitive data without the risk of financial misuse. There are different alternatives to a voided check that you can explore if you do not have checks and you want to set up automatic payments and direct deposits. Yet, voided cheques continue to play a vital role behind the scenes for everything from direct deposits to setting up automatic bill payments.
This physical document provides verified details required for the Automated Clearing House (ACH) network. When you’re asked for a “voided check” while setting up direct deposit or automatic payments in the US, it might seem confusing, especially if you’re new to the banking system. This guide explains what a voided check is, why it’s used, how to void one safely, and what alternatives exist if you don’t use paper checks. Whether you’re starting a new job or paying bills electronically, understanding voided checks can help you manage your finances with confidence. In summary, a voided check is a simple yet effective tool for safely providing bank account information for purposes such as setting up direct deposits or automatic payments. While it’s a relatively secure method, it’s important to be aware of the potential security risks and to handle and dispose of voided checks appropriately.
Accessing Your Bank Account Information
If you’re unable to provide a voided check, or if your bank doesn’t offer paper checks, there are alternative methods to set up a direct deposit or an electronic payment. A check is a written order directing a bank to pay a specific amount of money from a checking account. While digital transactions are increasingly common, checks continue to serve various financial purposes. Voiding a check is a routine practice that renders it unusable for payment but preserves its informational value. The primary purpose of voiding a check is to securely provide these banking details to a third party. The printed numbers are accurate and verified, reducing errors that could occur from manual transcription.
For electronic funds transfers (EFTs) or receiving refunds from various organizations, a voided check provides the necessary verified bank details to facilitate these electronic transactions. A voided check is a standard bank check that has been intentionally marked to prevent it from being cashed or deposited by any party. The primary purpose of voiding a check is to render it invalid for financial transactions while still allowing the bank account and routing numbers printed on it to be legible. The crucial information identifying your bank and specific account remains clearly visible. After voiding a check, maintaining proper security and records is important. A voided check still contains sensitive account information, including your routing and account numbers, so it should be handled with care.
Yes, many employers and service providers accept a scanned or photographed voided check, especially if submitted through a secure portal or email. Just make sure the image is clear and the word “VOID” is easy to read without covering your routing or account numbers. 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.