Can I use an old check as a voided check

What is a Voided Check?

A voided check is a check that has been cancelled. Once it has been appropriately voided, a check cannot be used. There are several possible reasons for a voided check. For example, there was a mistake in filling out the check, or the check was blank or only partially filled in, or the check was issued in error, or the check was submitted by an employee to an employer for use in setting up a direct deposit payroll account. In all of these cases, the voided check is not cashed.

How to Void a Check

A voided check may be perforated with a "Void" stamp, or crossed out, or have "Void" written across it, be shredded, or simply be stored in a voided checks file. It is best to permanently deface or destroy a voided check, so that no one can present it to a bank at a later date and expect to be paid for it. If the check is not currently in the company's possession, then contact the bank and authorize a stop payment on the check (for which the bank will charge a fee). If you write “Void” on a check, always use ink; someone could erase a “Void” mark made with a pencil and then try to cash the check.

How to Void a Check You Already Sent

If you already sent a check to someone, then it is not possible to void it. The recipient will be able to cash the check unless you immediately contact your bank and have them issue a stop payment on that check. Doing so will block the bank from honoring the check when the payee presents it. The bank will charge a fee whenever you request a stop payment. In order to send the correct information to the bank to stop payment, you will need to extract the requisite information from either a copy of the check or the check register.

This situation may arise when you write a check for the wrong amount, send it to the wrong party, or realize after the fact that you do not have sufficient cash in your checking account to fund the check when it is presented for payment.

Accounting for a Voided Check

In the accounting system, the check would have been recorded when it was originally created, so a reversing entry must be made that debits (increases) cash and credits (decreases) the account to which the payment applies. Thus, if the payment had been for an expense, the credit would be to the related expense account; if the payment had been to acquire an asset, the credit would be to the related asset account.

If there is a check register, the reversing entry is needed in order to record the elimination of the accounting transaction associated with the check number that is printed on the check.

In a computerized accounting system, there is usually a menu option for voiding a check, since this is a sufficiently common activity to warrant having its own routine.

When to Use a Voided Check

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. Writing “Void” across it prevents someone from using the check to falsely extract money from the person’s checking accounting. Another use for a voided check is to set up direct deposit payments, usually for payroll payments from your employer into your checking account. The employer needs a voided check in order to extract the bank account information from the bottom line of the check. 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.

What is a Voided Check for Direct Deposit?

Many employers ask their employees to submit a voided check in order to set up payroll direct deposit. To do so, an employee simply writes “Void” in large font across a check and gives it to the human resources department. If you want to be extra careful, you might write “Void” across the payee line, as well as on the signature line and in the payment box. No matter which approach you use, do not write on the magnetic ink characters across the bottom of the check, since doing so might obscure the bank number and account number that the human resources department needs. 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.

Before giving an employer a voided check, it can make sense to first make a copy of the check, so that you know how the check was used.

Setting up personal financial transactions such as online bill pay, paycheck direct deposits, or automated clearing house (ACH) transfers often require the use of a voided check. A voided check requires the word “VOID” written across it, indicating that it cannot be used for payment.

A voided check includes all pertinent banking information required to ensure correct electronic banking transactions for the 55% of Americans that prefer to pay bills online and nearly 94% of Americans paid via direct deposit.

Key Takeaways

• 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 withdraw money from your checking account.
• The word "void" should be visible on both sides of a voided check.

How to Void a Check

1. Use a blue or black pen.
2. Write “VOID” in large letters across the front of the check, or write “VOID” in smaller letters on the date line, payee line, amount line, and signature line, as well as in the amount box.
3. Make a copy of the voided check for your records, noting the check number.

Don’t cover up the routing or bank account number at the bottom of the check when voiding it, as those numbers are necessary for identifying your bank account to send or receive payments.

Reasons for Using a Voided Check

• To set up direct payments. Voiding a check may be necessary if you want to schedule electronic payments, either for personal use or if you run a business. For example, if you have a business and your vendors prefer to be paid electronically, then voiding a check may be part of the process to set up automatic payments.
• For direct deposit. Direct deposit can help you get paid faster, but your employer needs certain information from you to get it started, including your bank account number and bank routing number. Voiding a check is a simple way to provide those details.
• Regular bill payments. If you want to pay your mortgage, car loan, or other bills online, then you may have to submit a voided check to schedule payments from your checking account.

Keep in mind that voiding a check may also be necessary if you’re writing a check and making a mistake. If you write the wrong dollar amount, then you’d have to void the check to keep the person or business you write it out to from cashing or depositing it.

It’s important to note that you can’t void a check once you’ve given it to the payee. The only way to stop the check from being cashed or deposited is to request a stop payment from your bank, which may involve a fee.

You can’t void a check once you’ve given it to the payee.

What If You Don’t Use Checks?

Not every checking account offers checks. Chase, for example, is one of the larger banks offering checkless checking. These types of accounts may appeal to unbanked and underbanked individuals, who represent 5.4% and 18.7% of American households, respectively, according to the most recent FDIC surveys, which date back to 2017 and 2019.

If you have a checking account that doesn’t offer checks, you can try these options for setting up direct deposit or electronic payments.

• Use a deposit slip instead. Deposit slips should also have your routing number and bank account number, and this could be an option if your bank offers them.
• Submit banking details online. If you’re trying to set up online bill payments, you may be able to do that through your online banking access, with no voided checks or paper forms required.
• Ask the bank for a starter check. Your bank may be able to print you a starter or sample check with your routing number and bank account number that you could use for voiding purposes.
• Get other documentation from the bank. If you can’t use a deposit slip or starter check, your bank may be able to provide you with an official letter with your routing and account number that you could use in place of a voided check.

Why Do Companies Need a Voided Check?

Employers often use voided checks to set up direct deposits for their payroll, and service providers may need them to set up direct debits. This is because a blank check has all the information they need, such as routing or account numbers. Although it is not strictly necessary to get this information from a check, using one reduces the likelihood of a transcription or other type of error.

Can I Deposit a Voided Check?

No. Although you can sometimes deposit a voided check in an ATM, this type of error is likely to be spotted when human tellers review the machine's deposits. Any erroneously-cleared funds will then be removed from the recipient's bank account and returned to the original owner. If a voided check clears, customers can file a claim when they receive their statement.

How Do You Void a Check in QuickBooks?

You can easily void a paycheck or other payment through QuickBooks or other accounting software. In QuickBooks, you can do this by finding the payment under "Expense Transactions" and selecting the action "Void." The process will be similar to other accounting programs, and you can generally find specific instructions through the Help menu.

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