The Complete Guide To Using Voided Checks

If an employer or service provider asked you to provide a voided check and left you puzzled, you’re not alone.

This is actually a common request. However, most people do not really understand what this is or where and how to obtain it. In this guide, we’ll explain what a voided check is and why you may need it. We'll also walk you through the process of getting and writing one.

What Is a Voided Check?

A voided check is simply a check that has the word “VOID” written on it. Therefore, it cannot be used in any financial exchange or transaction. But why would you want to make a check completely unusable? As it turns out, voided checks also have a significant role in our financial system.

When you void a check, you are giving out banking details in a safe way. This measure prevents that particular check from being used to withdraw money from your bank account. The written word “VOID” on a check serves as a protective measure, making it impossible to cash the check even if it falls into the wrong hands.

When Do You Need a Voided Check?

There are several instances where you may need a void check, including:

1. Setting up Direct Deposits

When starting a new job, you may choose to receive your paycheck through direct deposit. Your employer may ask you to provide a void check for direct deposit setup. This gives them all the necessary information, including account and routing numbers that are found on the check.

2. Automatic Payments

You may want to set up automatic payments for bills like utility bills or mortgages. In such instances, the company may request a voided check to be sure that they have the correct account details.

3. Correcting Mistakes

You can make a mistake while writing a check, such as writing the wrong account number or name. If this happens, voiding is the best way to show that the check is not intended for any transaction. 

4. Electronic Transfers

Although this is quite rare, there are some financial institutions that may need you to provide a voided check. This enables them to set up electronic transfers of funds from one account to the other.

5. Verification of Banking Information

Sometimes, service providers or financial institutions may need to verify your account information. For example, when you’re applying for a loan or opening a new investment account. It ensures they have a guarantee that you own the account and the information you entered is correct.

How To Get a Voided Check

There are several ways to get your hands on a voided check, some of which are explained below. 

1. Use Your Checkbook: The easiest way to void a check is to take one from your checkbook and write ‘VOID’ in large letters. Ensure the writing does not cover the banking details at the lower part of the check.

2. Request from Your Bank: If you don’t have a checkbook, you can apply for a counter check that can be voided at your bank. Sometimes, the banks offer this service for free, while other times, they may charge a small fee.

3. Get it Online: Some banks’ websites now allow customers to log in and print a voided check. Go to the website or application associated with your bank, and search for this feature under the relevant options. These can be options such as account services or check ordering.

4. Use a Starter Check: If you have just created a new account, then you probably have received starter checks. These can be voided just as any normal check can be.

How To Write a Voided Check

Voiding a check is simple, but it is also essential to do it in the right way. This ensures no one will be able to cash the check again. Follow this step-by-step guide to void a check correctly:

1. Get a blank check from your checkbook.

2. Use a black or blue pen – do not use pencils or any erasable ink.

3. Write "VOID" in capital letters across the front of the check.

4. Ensure that the writing does not hide the banking information at the lower part of the check.

5. You can also write void in the date line, payee line, amount line, amount box and signature line.

6. Note the number of void checks in your checkbook to keep track of it, and remember that the check was voided.

Remember there is no need to enter any other information on the check, namely date, payee or amount. Also, if you use duplicate checks, be certain that the VOID marks are visible on the duplicate as well. 

Lastly, you should always avoid giving someone, especially if you don’t know the person, a blank check. This is because anybody can just complete it and withdraw funds from your bank account. A good rule of thumb to keep in mind is to treat checks like cash. 

Voided Check Example

Here’s what a check that is properly voided should look like:

Alternatives to a Voided Check

While void checks are commonly used, there may be situations where you don’t have access to one. In those situations, here are some possible alternatives:

• Direct Deposit Authorization Form: Some employers and organizations may give you their own form. You can just fill in your correct banking information.

• Bank Letter: The bank can give you an official letter showing your account details, which can do the same job as a void check.

• Deposit Slip: A deposit slip contains much of the same information as a check and can also be used in place of a void check for many applications.

Always find out from the requesting party which of these alternatives they accept. Then, you can go ahead to provide the required document.

Tips to Protect Your Financial Information

While void checks can be safe to provide, it’s never a bad idea to protect your financial information. Here are some tips to keep your details secure:

• Only give out these checks to persons and organizations you trust. 

• Ensure that you keep a record of all those to whom you have given voided checks.

• Review your bank statements regularly to check for any activity you did not do or authorize.

• If you have any questions about a request for the check, then you should contact the concerned organization.

Conclusion 

Knowing how to use a voided check and what it entails is all part of managing your personal finances. Remember, a void check is a document that provides a means of sharing your banking details when required. By following the guidelines mentioned above, you’ll be able to effectively provide a voided check when necessary. You’ll also ensure that your bank account isn’t tampered with while at it. So the next time you're asked for a void check, you'll know what to do.