In today’s world, where everything has gone digital, checks may look like a thing of the past, but their importance in a lot of financial transactions cannot be disregarded. Consequently, understanding how to void a check appropriately becomes essential for the person handling such payments. It can also be seen as a procedure to cancel a check from being encased or used fraudulently. I will explain how to do it and, in addition, why it is necessary to void a check in the first place.

The Straightforward Steps to Voiding a Check

Voiding a check is not as difficult as many people think. The main idea is to show or to indicate correctly that the particular check cannot be used for payment. Here’s how you do it.

  1. Selecting the Right Pen: To void a check, a pen with blue and black ink will suffice. Utilizing permanent ink will negate anyone’s ability to erase or alter the “VOID” marking.
  2. Write “VOID” Clearly: Focus on enlarging the “VOID” marking since it is the key factor. You have a couple of options here.
  • “VOID” Stamp- On the top front of the check, in the center, stamp the word “VOID” or write it in bold letters. The word should be visible.
  • “VOID” Under Signatory: Write “VOID” below the signatory’s box in slightly smaller letters or on the left, there is a note that states:
    • The date line
    • The “Pay to the order ” line
    • The amount line (both the written and numerical amounts)
    • The signature line
  1. Maintaining the Visibility of Important Figures: If for any reason you are canceling a check in order to give your bank details for direct crediting and electronic payments, be careful not to cover the bank routing number and your account number on the check. Those numbers are significant when setting up electronic transfers.
  2. Write it down now: Register or annotate the voided check in your accounting system. Write the check number and date when you voided the check as well. This assists you in maintaining precise records.
  3. Consider a Copy: If you need to provide proof that you voided the check, make a photocopy before you store it away.

Why Would You Need a Voided Check?

If you’re like most people, you’re probably asking yourself the question, “Who Would Be of the Need Not To Use a Check?” There are numerous scenarios, such as:

  • Direct Deposits Setup: Direct deposit setup is usually done when someone is starting school or getting payments from companies. In these cases, the companies or the people ask for the blank check to be able to void the check, which helps the support or the admin help the people receive their payment directly into the account, saving time due to paperless working.
  • Direct Payments Setting: In the case where someone wants to pay directly or on a monthly basis for their rent/ bills/ mortgage or for any payment that needs to be made in a fixed time. Services also require you to utilize a blank check to attach your account to the payment system.
  • Making Proofs: If there exists a scenario where a person makes an error such as the wrong spelling of the payee name or the amount on the check which was written was incorrect, one way to resolve that issue is to do the following: the blank check is not necessary as no such events will take place which results in losing correct information.
  • Canceling Check (When Not Used): There are certain cases where a check is not used; in a scenario where a check is voided, and then a payment is transferred, one should cancel the check before it is deposited by using the he/her virtual bank and then transfer the money. It is also necessary that if they were done, the deposit-taking bank charge for that.

What if You Don’t Have a Check?

The use of a checkbook is no longer universal. So, if at all you need to submit bank details but you do not have a physical checkbook, what do you do? Don’t be so anxious; there are other options as well that you may explore:

  • Deposit Slip: A deposit slip bears your routing number as well as your account number. You may also be able to provide a copy of the deposit slip in place of a voided check.
  • Online Banking Information: Thanks to the advancement in technology, many firms let you type your routing and bank account information securely via their website.
  • Bank Letter: A bank can issue a letter that will outline an individual’s account information, such as the account number, together with the routing number.
  • Direct Deposit Form: Direct deposit forms are available to a host of employers and organizations, where you are required to fill in the manual banking info.

Common Pitfalls to Avoid

There are some things to take into account while voiding a reasonably simple check:

  • Don’t Void a Check You Have Already Given Out: Once a check has been handed over to someone, it shouldn’t be avoidable. In this instance, you should instantly refrain from going to your bank and place a stop payment order.
  • Avoid Handing Out Blank Checks: Giving out a blank signed cheque is very risky. One could fill it out with any amount and take every penny out of your account.
  • Dealing with the “VOID” Stamp: Be sure that the “VOID” stamp leaves no confusion. It should not be reduced to “Let me put my signature, which can mean several things.”

Voiding Checks in Accounting Software

Accounting software such as Quickbooks makes the checking voiding process even simpler. Most of the time, you can find the transaction and choose “Void” for that transaction. This marks the check as “ voided” in your files. Intuit, which manufactures Quickbooks, explains that ‘It is possible to pass the void operation on a check from the expense transaction details.’

Frequently Asked Questions (FAQ)

Q: Can I deposit a voided check?

A: It should necessarily be the case that you deposit a voided cheque. The “VOID” marking is a clear indication that the cheque has already been paid and is not to be used for a payment transaction. Counters might take it momentarily on hold for a deposit, but it is most likely that it would be a reversal. There is a chance of being charged a fee.

Q: Is it better to void or cancel a check?

A: Voiding a check is usually done before it is submitted to the receiver of the cheque payment, which is mainly done to create accounts or make clarifications. Cancel a check (placing a stop payment) is the opposite and takes place after the check has been drawn out but not after it has been presented for payment in order to avoid payment for a service.

Q: What color ink should I use to void a check?

A: To void a check, it is recommended to use blue or black permanent ink.

Q: Do I need to tear up a voided check?

A: While it is not compulsory to shred the voided, it is a good idea to do so or retain the ‘voided’ cheque in a decent area to limit leakage of personal information, including bank details.

Q: How do I void a check electronically?

A: No, A physical check cannot be void online. However, the web applications allow the option to void online checks, which are created in an online bill pay application and accounting software.

The Bottom Line

It is essential to know how to void a check as this is part of responsible financial management. The procedure itself is pretty simplistic, but it allows you to avoid mistakes being made and ensures that your account details are accurately entered when setting up the transfers electronically. If you wish to handle this part of your financial life with ease, it is as simple as doing the following and understanding its ‘why.’