They ask for this because a check has all the information your employer needs to help ensure your paycheck is deposited in your account. Employers usually ask for a voided check as a simple way to collect your banking information for direct deposit. With the routing and account numbers from your voided check, your employer can arrange to have your paycheck deposited directly into your account on payday, saving you time https://accounting-services.net/ and hassle. Voiding a check can be a key step in setting up financial transitions like regular payroll direct deposits. Voiding a check properly by writing “VOID” in large letters on the documents will help reduce the risk that the check will be cashed. In lieu of a voided check, you may also be able to provide documents such as a direct deposit slip that can provide the key financial information for the transition.

• This is a seldom-discussed aspect of voided checks, but it’s critically important for protection from identity theft.
• When the check finally clears the account of the payor or the person who wrote it, it’s considered canceled.
• There are several common situations when someone will ask for a voided check, which the next section discusses.
• 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 can also use a voided check to set up automatic payments to come out of your checking account automatically. In order to set up a direct deposit, your employer will need your account details. They may ask for a voided check because all your account information can be found on there including your account number, account type and bank routing number.

When should you void a check?

The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. A debit card is a payment card connected to a checking account, and you can use it to make both online and in-person purchases, where cards are accepted. In a variety of situations, providing a voided check enables you to share your checking account information without allowing anyone to use the check.

• 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.
• A voided check easily and conveniently gives access to your banking information.
• Sometimes you will need to void a check, and in order to avoid problems, you’ll need to know exactly how to do it.
• This is necessary if you intend to pay your car loan, mortgage and other bills online.

This can happen if you accidentally write the wrong amount on the check, or if you write the wrong name down for the recipient. Below are a few of the most common questions we receive from people looking into what a voided check is. If you have further questions you would like to ask our team, don’t hesitate to get in touch. This article is part of our free series on sending money, including the ultimate guide to bank checks, which you can access here.

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Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and https://www.wave-accounting.net/ our editorial team. Our editorial team does not receive direct compensation from our advertisers. If you deposit a voided check in an ATM, it may be briefly accepted.

In the other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. Find out what ACH stands for, what it can be used for, and the pros and cons of ACH transfer. Understand the key differences between APR and APY, and how they affect your savings accounts, CDs, and even crypto investments.

How to Write a Check in 5 Easy Steps + Examples

If you prefer the convenience that online banking provides, then check out Wise. Wise is a safe and easy way to send, receive and manage your money without any old-fashioned banks involved. He decided to void the check and issued a new one for his supplier, then he invited him and his family for a free dinner to compensate for all troubles caused. The voided check was adequately destroyed and the new one was assigned as the payment for that supplier’s invoice in the company’s accounting system. You might need to know how to send a voided check to start a direct deposit with your employer or set up autopay for a bill.

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Sometimes writing a check is easier if you are not comfortable with managing your finances all online or using apps. I graduated in 2003 from Carnegie Mellon University with a Masters in Software Engineering and I use my analytical skills to navigate the financial world. It’s through this education that I try to distill complex financial ideas into simple steps regular folks can use to take control of their money and build wealth. Once you’ve voided a check and shared it with your employer or another business, make sure that you set up a budget to keep track of your income and expenses. You can use copies or pictures of the same voided check for multiple situations.

Voiding a check may be useful if you intend to schedule electronic payments. The banking information necessary to start the direct deposit is the account and routing numbers. Therefore, when you give your banking information to another person for legitimate use, you can use a voided check. This is because you can https://accountingcoaching.online/ make a mistake while copying the details on the check. Also, ensure it’s written across the entire check, but don’t write over the information at the bottom of the check since it includes important banking information. Keeping a partially written check around without voiding it is risky as it could be stolen.

How to Void a Check

You can then treat it as if it came from your checkbook and then void it right there. There might also be situations like my example above, where a voided check is just the quickest and the best option to set up payroll. And although I am a millennial, I still remember using a “voided check” to set up payroll at one of my first jobs during college.