If you don’t have any checks, and you want to set up a direct deposit or automatic electronic payment, there are other ways to do so. While you don’t strictly need a voided check to set up a direct deposit², many employers will ask for one. A voided check is a check which is no longer valid and has the word ‘void’ written on the front. To make sure that your account remains safe and protected, we don’t advise you to sign your voided check. Moreover, if for any reason you’re required to sign the void check via email, make sure you send it as an encrypted PDF so that hackers can’t get access to it. Other examples include profits from annuities, mutual funds, deposit certificates, and income from any investments.
Because of this, you’ll need to hand over a void check to supply this information. A voided check is a check with the word “VOID” across it, which indicates that it shouldn’t be used for payment. It’s typically written in large letters, so it cannot be mistaken for cash use.
Automatic Bill Payment Plans – Advantages & Disadvantages
Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That’s why we provide features like your Approval Odds and savings estimates. With direct deposit, you can use void check meaning the money in your account immediately since there’s no temporary hold on deposits. The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking.
- That story’s probably apocryphal, but it conveys a deep truth about the power of fiscal policy to change the world along with our daily lives.
- Moreover, if for any reason you’re required to sign the void check via email, make sure you send it as an encrypted PDF so that hackers can’t get access to it.
- You can request a counter check with your account information from the teller at any branch of your bank.
- A voided check is a paper check with the word “VOID” printed or written across it, which means it can’t be filled out or used to make a payment.
- A voided check can be useful for providing the necessary information for certain electronic payments, such as direct debits.
- Alternatively, you can write “void” in each field of the check separately.
All you have to do is grab a black pen or marker, write “VOID” using all capital letters, and you’re all set. If you’ve been handling your finances for some time, chances are you’ve seen a personal check with the word “VOID” written boldly across the front. All this means is that the check is now invalidated and can’t be deposited or cashed by the intended recipient. You can safeguard your voided checks by using long-lasting indelible gel in pens, preferably with black ink. We think it’s important for you to understand how we make money. The offers for financial products you see on our platform come from companies who pay us.
Potential reasons to void a check
If you’re like most people, you hardly ever use paper checks anymore. It’s much easier to make purchases with a debit card or payment app, use online banking to pay bills, and receive your paycheck by direct deposit. 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. The most common use for a voided check is to establish a direct deposit¹.
To simplify and speed up payment, you may set up an electronic billing and payment arrangement with that client. Setting up the arrangement may require you to provide a copy of a voided check so the client can establish the electronic link https://www.bookstime.com/ for payment purposes. Even though fewer consumers make payments by check, voided checks remain important. That’s why it’s good to know how they work, even if you don’t frequently pay by check, so you remain protected when you use them.