With that, an individual can potentially do a lot of damage to your checking account. I’ve been on my high horse lately about the dangers of writing a check from your primary checking account to an individual, unless it’s someone like a trusted relative or dear friend. All you need to do is write “void” in large letters across the face of the cheque. Make sure you take up as much space as possible so that someone cannot try to fill it out and use it. These are the account numbers and usually the reason a void cheque is needed. The word “Void” should stand out from the pre-printed information on the check, so it’s clear to anyone that what can someone do with a voided check the check’s invalid.
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If your bank still sends you copies of voided checks, you must dispose of them properly. Otherwise, you could make yourself vulnerable to identify theft if you simply throw them in the trash. Some banks don’t impose time limits for customers to report fraudulent check cashing. But because stolen paper checks aren’t regulated by federal laws the way stolen debit and credit cards are, policies can vary from one bank to the next. It’s a good practice to keep a record of voided checks for at least one year to ensure you have a clear financial trail for tax purposes or to resolve any disputes that may arise.
Leave the checking account and routing number area clear
Your bank’s identification and your account number are printed on every check. If the wrong person gets hold of this information, it is a simple thing to duplicate that information and clean out your account. Discover what FDIC insurance is, its limits, and the types of accounts it covers. Learn if your money is safe in banks, credit unions, and with CDs. Most companies don’t even need an original; a copy of a voided check is good enough.
What is the purpose of voiding a check?
- You may also be able to use a deposit slip with your bank account information on it.
- Make a note of “VOID check” to make sure you know why that check is skipped when you’re balancing your checkbook.
- • If the payee is a person or vendor who insists on personal checks, you might want to deliver the payment in person.
- That way, you can start over and write a new check with the peace of mind that you won’t lose any money due to a mistake.
- 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.
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. When you send a message, it moves through numerous computers, some of which might have malicious software installed. What’s more, you don’t know how careful your recipient is with his email account.
- • Fees for stopping a check vary from one bank to another but can run around $15 to $35.
- If someone requests a voided check from you, it’s easy to take care of.
- It also protects you from fraud if you have blank checks sitting around that you may not plan on using anymore.
- Writing checks may not be an everyday occurrence for you, but they are still a reliable form of payment that have a place in most people’s finances.
- It is essentially a check with the word “VOID” written across a blank or partially written check.
When you must use checks — void checks and vulnerability
The check can still be used to get the information needed for electronic payments. You may need to void a check when you make an electronic financial transaction. A voided check includes banking information required to ensure correct electronic banking transactions for people who pay bills online or are paid via direct deposit. This information is most often used to set up an electronic link to your bank account. For example, you can provide a voided check to a person or company.
Reasons for Voiding a Check
Using a voided check reduces the likelihood of errors, like transcription errors. A voided check may be necessary to set up direct deposits, automated clearing house (ACH) transfers, or electronic bill payments. Voiding a check means it can’t be used to make a payment or otherwise withdraw money from your checking account. No, a voided check cannot be deposited or cashed because writing “VOID” across it invalidates it. The check is used solely for informational purposes, like sharing bank account information or setting up direct payments. It’s possible that a voided check may be deposited in an ATM for a short period of time, but if any funds are deposited, they should be reversed because the check ultimately won’t clear.
Understanding the FDIC insurance limit: safeguarding your deposits
There are also instances when a company requests a voided check, or when you wish to have a check voided for your own purposes. If you don’t have any checks, and you want to set up a direct trial balance deposit or automatic electronic payment, there are other ways to do so. A voided check can be useful for providing the necessary information for certain electronic payments, such as direct debits. For example, if your company’s payroll department needs a check from you to set up direct deposit, you can provide a voided check.
Of course, the check could get lost and the information could be used by thieves, but most letters make it to their destination safely. Vendors are unlikely to steal from your account, and the image might be safely stored or deleted after it gets used, but if fraud occurs, the risk is significant. When thieves access your account, you could potentially lose money, and the domino effect can make your life difficult. For example, you might end up bouncing other checks or missing payments because there’s not enough money for necessary payments. You can still use that check to grab or provide your bank routing and account number as those numbers are tied to your bank account and not individual checks, however. As a business owner, you’ll need a voided check during the funding process so that your lender knows where to deposit your funds.
By going to your local police department, you can create a paper trail to show the bank and others you’ve been doing all you can to get to the bottom of your loss and stop any further theft. If you believe your check was stolen and you’ve already reported it to your bank, there are a few more steps you may want to take to protect yourself. • If the stop payment order ends and you suspect criminal activity, you can renew the order for an additional six months, but you may have to pay another fee. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Bookstime There isn’t as much security surrounding this issue as there should be. Often, it’s a case where banks act first — allow money to be debited — and then ask questions or respond to questions later.