If you’re unfamiliar with the financial industry, the term “void cheque” might sound foreign. You may have encountered your bank using the word “void” while writing out a cheque, leaving you wondering about its significance.
Essentially, a void cheque is just a blank cheque from your chequebook with the word “VOID” written across it. When a cheque is voided, it means it has been cancelled and is no longer usable for deposits.
In this blog post, we will explain what a void cheque is and show you how useful it can be. If you’ve ever wondered about getting a void cheque or when to use it, don’t worry; we’ve got all the answers for you.
By the end of this comprehensive guide, you’ll be equipped with a clear understanding of what a void cheque is, how to obtain one, and when it comes in handy.
What is a Void Cheque?
A void cheque is a regular cheque marked with the word “VOID” to indicate that it is no longer valid and cannot be used for cashing or payments. While it may seem useless, a void cheque contains important and sensitive information, such as the name, address, transit number, financial institution number, and account number.
The primary purpose of a void cheque is to facilitate setting up direct deposits or automatic payments for recurring bills. People often use void cheques for these specific purposes.
It’s important to recognize that simply discarding an old or unused cheque is insufficient to protect your information. Instead, to ensure added security and prevent thieves and criminals from accessing your blank cheques, you should render the cheque void by clearly writing “VOID” on its face using ink. This step removes the cheque from circulation and safeguards your sensitive data.
What is a Void Cheque Used for?
Void cheques serve various purposes, and understanding when and why to use them is important. Let’s explore some situations where you might need a void cheque:
- Direct Deposits: When you start a new job and wish to have your salary directly deposited into your bank account, your employer may require a void cheque. Providing a void cheque allows them to set up a direct payroll deposit efficiently. Direct deposits are common for employees, and void cheques streamline the process for the payroll department.
- Pre-Authorized Debits for Bill Payments: To ensure timely and automated payment of recurring bills (e.g., rent, utilities, insurance, loans), you can set up pre-authorized debits. Void cheques are useful in this scenario because they allow your bank to set up automatic withdrawals from your account. This way, you can easily handle regular monthly expenses without the hassle of manual payments.
Void cheques offer several advantages, making them a practical option for sharing your banking information securely. Instead of sharing your bank routing number and account number separately, you can hand over a void cheque with the necessary information already printed on it. This minimizes the risk of errors when recording the numbers and helps protect against potential identity theft.
For added convenience, keeping a supply of voided cheques on hand is a good idea to avoid any costly mistakes with your banking information. Additionally, consider carrying one in your wallet or purse and some blank cheques, so you can readily provide your banking details when required.
While void cheques are valuable for legitimate situations, it’s crucial to remain cautious when someone requests your information. Be alert for any signs of potential exploitation, and only share your banking details with trusted and reputable parties.
How to Void a Cheque
If you possess a blank cheque and want to void it, follow these simple steps to ensure clarity and readability:
- Boldly and legibly write the word “VOID” on the front of the cheque.
- Make sure to write “VOID” big enough to cover the entire cheque, except for the important numbers at the bottom that the recipient will need.
- Avoid overlapping the numbers on the bottom when writing “VOID.”
- Using a dark pen or a thick black marker to mark the cheque is essential. Avoid using a pencil or anything that could easily be erased.
How to Read a Void Cheque
A voided cheque contains three crucial sets of numbers required by companies or employers to set up direct deposit or pre-authorized payments. These numbers are usually located at the bottom of the cheque.
- Transit (or Branch) Number: This five-digit number identifies the branch where you opened your bank account.
- Financial Institution Number: This three-digit sequence identifies your specific bank.
- Account Number: Your personal seven-digit bank account number.
How to Get a Void Cheque From Your Bank
You can easily request a void cheque from your online banking portal if you don’t have a blank cheque. Once received, you can either print the void cheque or download it, save it as a PDF and conveniently email it to anyone requiring the information.
Remember, you can use the void cheque multiple times if your personal details, like your address, remain unchanged. If there are any updates to your personal information, simply notify your bank and download the updated void cheque from the banking portal.
Alternatives to Void Cheques
You can visit your local bank branch if your online banking portal doesn’t offer the void cheque option. Request a void cheque from a bank teller, often called a “counter cheque.” Usually, banks provide a few counter cheques for free, but they may require you to order a chequebook for future needs.
Another option is to get a preprinted deposit slip from your bank. This slip contains all the necessary information found on a void cheque. Visit your bank in person to obtain it or explore the possibility of entering your account information online for a void cheque.
Remember, each method has its advantages and may suit different situations. Choose the option that works best for you based on your banking needs and convenience.
Final Thoughts on Void Cheques
Having explored the ins and outs of a “void cheque,” I can confidently say that understanding its importance is crucial for hassle-free financial transactions. By knowing how to read the transit number, financial institution number, and account number on a void cheque, you’re well-equipped to easily set up direct deposits or pre-authorized payments.
So, whether you’re a business owner streamlining payroll processes or an individual simplifying bill payments, don’t underestimate the significance of a void cheque. Take charge of your financial future today!
Order a book of cheques from your financial institution and keep them on hand; when you need one, all you have to do is tear one out, void it, and give it to whoever needs it.
FAQs on Void Cheques
What to Do After You Void a Cheque?
When creating a void cheque, ensure you provide it to the individual or organisation who requested it. You can reuse a void cheque since it aims to get accurate account information, as it is not legal tender.
Also, save the original of the void cheque if you can provide it electronically, such as through scanning or an online banking feature. By doing so, you can re-use it and save yourself from writing another cheque.
Lastly, remember to keep track of your void cheques and make sure you discard them properly. The addresses and banking information on them remains, despite being invalid.
Can someone send me a picture of a cheque?
Yes. The payee can receive a check via email, print it, and cash it once it is ready. If you do not want to cash the check, you can deposit it in a bank instead.
What is a void cheque used for?
You can link your bank account to your void check, as your account information appears on every cheque. Voiding the cheque prevents criminals from filling in your cheque and withdrawing cash from your account.
Do void Cheques expire?
There is no expiration date for a voided cheque. “Void” simply indicates that a person cannot cash a personal cheque.
Is it safe to email a void cheque?
You shouldn’t send the voided check in an email message in the open if you provide the cheque electronically. Ensure that your account information is hidden from hackers and thieves.
Does a voided cheque need to be signed?
No. A void cheque does not require your signature or any other information. Your banking information is copied from a voided check and entered into the recipient’s system when the check is received.