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Voided Checks 101 – Everything you Need to Know

To America’s smartphone generation, a voided check might sound like an antiquated term from a bygone era. But they still fulfil a number of useful purposes in the 21st century USA, and if you get a new job, apply for a loan or take out a mortgage, you might need one at short notice.

Voided Checks 101 – Everything you Need to Know

What exactly is a voided check?

A voided check is exactly what it sounds like. It’s a paper check that has the word “VOID” written across it, meaning it cannot be filled out to make a payment. Voided checks are often requested by US businesses, lenders or financial institutions as they are a convenient way of providing all the necessary information for setting up direct bank payments, either into or out of your account.

To void a physical check, you simply tear it from the check book and write the word VOID across it, being sure to cover all the fields including payee, date, amount and signature, but without covering or obscuring account information or banking details.

Online tools for voided checks

An alternative to voiding a physical check is to use a great online tool made by VoidedCheck which instantly creates a voided check for you, regardless of which US bank or credit union you use, or the type of account. It is the most secure way of providing a voided check, as it contains all the necessary information but is digitally generated and permanently and indelibly voided, so there is no chance of it being misused for a payment.

The other benefit of using an online generator is that it provides instant access to a voided check for the growing number of Americans who no longer use check books. The truth is that checks are in permanent decline as a payment method. Only about a third of under-60s still write checks regularly and more than half of American under 30s never write checks and do not even own a check book. For them, this kind of tool that allows you to create a voided check in seconds from the web browser on their smartphone is absolutely ideal.

The importance of voided checks

Writing checks to pay the bills or buy groceries might be a practice that is gradually disappearing into history, but there is still a need for voided checks in contemporary US society. They serve as an effective and convenient way to share your bank account details while minimizing exposure to fraud risk. When you provide a voided check, you can be sure the banking information is accurate, and there is less chance of a typo such as numbers being accidentally transposed.

This is why so many US employers still ask you to provide a voided check in order for them to set you up on the payroll. Similarly, credit unions or mortgage brokers often ask for one when confirming the banking arrangements for monthly repayments.

Minimizing fraud risk with voided checks

We have mentioned that voided checks are a practical way of sharing banking information safely. But still be careful with their use and only share them with people or institutions that you trust and who have a legitimate need for your account information. A correctly voided check cannot be used for payment, but it still contains sensitive and personal information, so treat voided checks as confidential documents.

Also, if using an online tool to create a voided check, make sure it is secure. The voided check generator mentioned earlier uses the latest security and encryption technology to keep all your personal data safe and protected from prying eyes.

It is good practice to keep a record of voided checks, whether these are from your physical check book or generated online, including the check number if applicable, to whom it was given, on what date and for what purpose. Then if there are ever any discrepancies, it is easier to verify and cross-reference.

Voided checks in the digital age

The idea of carrying a check book and writing a check is something that younger generations of Americans only see on reruns of old TV shows, or perhaps when receiving a check for $20 as a birthday gift from an elderly relative.

But it is still common practice to use a voided check to provide bank account details and as a form of identity verification. A secure online tool for voided checks is a secure and convenient way of meeting our voided check needs in the digital age.

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