Depending on if the service saves enough time to compensate for the payment, this may be the best solution for a busy entrepreneur that doesn’t have time to process payroll by hand. FinanceBuzz is an informational website that provides tips, advice, and recommendations to help you make financial https://www.bookstime.com/ decisions. We strive to provide up-to-date information, but make no warranties regarding the accuracy of our information. Ultimately, you are responsible for your financial decisions. FinanceBuzz is not a financial institution and does not provide credit cards or any other financial products.
For example, many insurers offer an attractive discount if you make automatic payments. Depending on your bank, you will probably be able to cancel a check through your online banking account. In some cases, your employer may ask for the physical check that has been voided. You may be able to provide a pre-filled form from your bank. Voided checks often contain other important details necessary for an ACH electronic transaction setup, such as your bank’s branch address and phone number.
Reasons for Using a Voided Check
When you void something it means you’ve made it empty, of no effect, or null. So if a written check is full of the monetary amount you write on it, voiding the check makes that check financially empty. A voided check contains the word ‘VOID’ across the front end of the check. The word void indicates that the check cannot be accepted for the payment purpose. But the check can be used to get the banking information. By voiding the check, it can be prevented to use as a blank check.
Log into your account and seek out the customer services and options provided by your bank. If you have the option to stop a check payment or void a check, select this and cancel the appropriate check number. I don’t need to keep a record of the voided check as it will automatically be reflected in my bank account. A check is a physical document and contract that acts like a promissory note from the payor to the payee. This document lists the amount to be paid both in numerical and written values. The money to be paid is drawn from a bank account, which is also defined in the check. The check allows two or more parties to make a monetary transaction without exchanging paper currency.
What Does It Mean to “Void” a Check?
If you don’t have a voided check, there are other ways you may be able to set up direct deposit. The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers.
The most common use is for a company to use it in setting up direct deposit. Make a copy of the voided check to send to your employer or whoever else voided check needs the voided check. You can keep the original for yourself as a reminder that the check with this number was not used for a specific payment.