Content
Yet another use for a voided check is when a lender wants to use it to set up an automated loan payment. As was the case with direct deposit, the lender will want to use the bank account information listed on the bottom line of the check. 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. Some businesses even take payments over the phone, allowing customers to provide the information orally.
- This is usually used to verify the routing and account information.
- Generally, if “VOID” is written across a check, no matter how or where, it will be recognized as a voided check.
- Instead, you’d give it to a business or person so they can get your bank account info ( your account and routing numbers).
- How many of the young generation know their account number and bank routing number and how to obtain the information.
- Most employers will ask for a voided check to set up your direct deposit in addition to filling out a form.
The reason why employers ask for a voided check is that your checking account information is stated across the bottom of the check; this information is then used to set up direct deposit payments to you. There are several situations in which a voided check might be used. The most obvious one is when a mistake has been made when writing a check, such as stating the wrong payee or amount to be paid.
How do I set up direct deposit?
In the other states, the program is sponsored by Community Federal Savings Bank, to which we’re a service provider. Find out what ACH stands for, what it can be used for, and the pros and cons of ACH transfer. Discover a range of valuable financial topics in our Learning Center.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Insurance services are provided through First Republic Securities Company, DBA Grand Eagle Insurance Services, LLC, CA Insurance License # 0I13184. Using paper checks https://goodmenproject.com/business-ethics-2/navigating-law-firm-bookkeeping-exploring-industry-specific-insights/ can be risky, because of the sensitive banking information they contain, which could be dangerous in the wrong hands. Once you’ve voided a check, try to ensure it’s either disposed of or kept safely with other sensitive files. It’s possible to establish direct deposit without voiding a physical check.
Let’s back up. What is a voided check?
A void check is a check that has been canceled or invalidated by the sender writing the word VOID on the check. Conveniently make your loan payment with a debit card or electronic check! To void a check, simply write the word “VOID” over the area where you would normally fill in all the information. Be careful not to write over those important bank numbers at the bottom of the check.
Electronic money, or e-money, is a simple way to send, spend, and receive payments online. As we start to move away from cash or checks, e-money transfers are… 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. A voided check can be useful for law firm bookkeeping providing the necessary information for certain electronic payments, such as direct debits. While Chime doesn’t issue personal checkbooks to write checks, Chime Checkbook gives you the freedom to send checks to anyone, anytime, from anywhere. See your issuing bank’s Deposit Account Agreement for full Chime Checkbook details.
Banking
The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. No, it isn’t necessary to sign or put any information on a voided check. To do that, you’ll have to write the word ‘VOID’ in capital letters going across the front of the check. Make sure you use a black or blue pen with permanent ink, and if you have a duplicate check, do the same for that copy.
