If you find yourself needing to present a voided check to an employer to have your paycheck direct deposited or to a company for setting up electronic payments, visit your bank. You may be asked to send a voided check if you want to set up an electronic payment method for certain bills. That will eliminate the need for you either to issue a paper check in payment, or to go online and arrange the electronic payment manually. Employers may ask for a voided check to help them set up direct deposit and you may need to void a check for other purposes, so it’s handy to know how.
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If you deposit a voided check in an ATM, it may be briefly accepted. But once the error is identified, the cleared funds will then be removed from the recipient’s bank account and returned to the original owner and a fee may be charged. If a voided https://www.kelleysbookkeeping.com/ check clears, customers can file a claim when they receive their statement. You can request one up until the time the person you wrote the check to presents it. You typically can’t stop payment once they submit the check for cash or deposit it.
Why do companies need a voided check?
- Some checks might explicitly state a different period, such as three months or a year.
- Employers often use voided checks to set up direct deposits for their payroll, and service providers may need them to set up direct debits.
- This way, you won’t have to mail a check or use your credit card.
- To ensure a check isn’t cashed by the recipient, call your financial institution and put a stop payment on the check.
To do this, write down the original check number in your check register or software you use to track check payments and make a notation that it has been voided. If your bank’s online tools allow you to keep track of your written checks, record it there. The easy way to do this is to write “void” in big letters so that it covers most of the check. Make sure the bank routing number and your account number on the bottom of the check are still readable, as well as the name and address of the bank (if included on the check). Alternatively, you could write “void” in the payee line, dollar amount box, signature line, and dateline.
How to Void a Check After Sending It to the Recipient
To start, take a blank check and print “VOID” in large letters across the center with a blue or black pen. A woman sits at her dining room table with laptop and financial reports doing her monthly budget. [+] She is smiling at the ease of use as she works on her smart phone banking app to do monthly https://www.kelleysbookkeeping.com/how-to-calculate-your-business-valuation/ finances, pay taxes and save money for the future. FinanceBuzz is an informational website that provides tips, advice, and recommendations to help you make financial decisions. We strive to provide up-to-date information, but make no warranties regarding the accuracy of our information.
What is voiding a check?
Requesting a voided check is the usual way employers set up direct deposit into their employees’ checking accounts. Employees prefer direct deposit because it’s instantaneous and eliminates the need to wait for a paper check to clear their accounts. Companies may require a voided check to set up direct deposit for employees or to establish automatic bill payments. It helps provide a company with the necessary bank account information while preventing the actual check from being used for financial transactions. If all else fails, you may be able to get official documentation from your bank or credit union instead of voiding a check. Ask for a letter, printed on bank letterhead, which lists your account number, routing number, and account type (checking or savings).
You can ask your financial institution to send a letter providing all the same information to the party requesting your voided check. One of the advantages is your bank or credit union may send the letter directly to the party requesting the voided check, avoiding the need to send it by email. A voided check has the word “VOID” written across it, indicating that it cannot be used for payment.
The check won’t be usable to the other party if the words are so big that they cover the account details like routing and account numbers. If you’ve started a new job, your employer will likely pay you through a bank account. Many employers ask for a voided check to ensure no errors in recording your bank account information.
There’s still a way to void a check after sending it—but you’ll have to act fast. Now let’s talk about how to void a check, including when you’ll need to and what to do if you don’t have a physical checkbook. The word “Void” should stand out from the pre-printed i completed my tax returns but want to double check an entry how can i do this information on the check, so it’s clear to anyone that the check’s invalid. Voiding a check may seem as simple as just writing “void” across the front. Business firms and other organizations aren’t the only entities that may involve recurring personal payments.
In this guide, learn how to make a voided check and other potential factors to consider. Another solution is to visit a branch and ask for a “counter check.” The teller might be able to print a check with your account information on it. If so, try voiding that check as if it came out of your checkbook.
Alternatively, some banks provide form letters for setting up direct deposit—print it while you’re logged in to the online banking system, and it should have everything you need. Employers often use voided checks to set up direct deposits for their payroll, and service providers may need them to set up direct debits. This is because a blank check has all the information they need, such as routing or account numbers. Using a voided check reduces the likelihood of a transcription or other type of error. It normally has the word “VOID” written across the front so it may not be mistakenly used for a transaction. People can supply a business or an entity with a voided check to easily share their bank account details for an electronic payment or direct deposit.
However, you may run into difficulty in the future if you somehow misplace the check and someone tries to use it. They may also ask you to fill out a direct deposit authorization form. Once the company you wish to pay has this information, the funds can be directly withdrawn from your account. This way, you won’t have to mail a check or use your credit card. This will ensure it reaches the intended place without passing through third-party hands. If in person is not possible, a fax delivery is preferred to email.
You may have a payment arrangement set up with another person, such as a family member, a friend, or even a landlord/tenant to make recurring payments electronically. By asking you for a check, your employer reduces the potential for errors. If you have to fill out a form, it’s possible you’ll make a mistake. If the employer has to read your handwriting, perhaps it’s not perfect and a mistake is made when entering the information.
Without a voided check, you may have entered your checking account number incorrectly. If someone else has the same account number as the incorrect entry, the wrong person may end up being debited. 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.