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. The most obvious one is when a mistake has been made when writing https://www.bookstime.com/ a check, such as stating the wrong payee or amount to be paid. Writing “Void” across it prevents someone from using the check to falsely extract money from the person’s checking account. Another use for a voided check is to set up direct deposit payments, usually for payroll payments from your employer into your checking account.

A voided check is a check with the word “void” written across the front, which indicates that it shouldn’t be accepted for payment. The check can still be used to get the information needed for electronic payments. You can also use a voided check to set up automatic electronic payments, including ongoing expenses such as rent and bills.

When to use a voided check

After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. Conveniently make your loan payment with a debit card or electronic void check meaning check! In this case, you just write void across it and keep it in your records. This way, if your check gets lost, you won’t have to worry about it getting in the wrong hands. Once you’ve voided your check, make sure to keep the correct records.

Make sure not to cover the numbers in the lower left of the cheque – this is the banking information that is required to set up the link to your account. Voiding the cheque ensures that you aren’t sending out a “blank cheque” that criminals could fill in and use to withdraw money from your account. A void cheque is a cheque with the word “VOID” written across it, which prevents anyone from filling out the cheque and using it to make a payment. The information provided in these articles is intended for informational purposes only. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.

Requirements for a Voided Check

Ask for a letter, printed on bank letterhead, which lists your account number, routing number, and account type (checking or savings). 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. Consumers often provide their own routing and account numbers online without any problem, so voided checks are required less frequently. For example, online banks allow you to link external accounts by typing in those details yourself. Billers, such as utility companies, also accept payments by e-check when customers input their checking account information.

In most cases, you need to provide your bank account information in an online form. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. 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 our editorial team.