How to Void a Check

Voiding a check is the process of rendering a physical check unusable for the purpose of depositing or cashing it. The goal is to prevent the check from being used either because it was filled out incorrectly, or because it’s being used to set up a direct deposit or automatic payment.

Theory

When you write a check, it serves as a promissory note to pay someone a specific amount from your bank account. To void a check means to nullify that promise for that specific check, making it non-negotiable. Voiding a check is often necessary to prevent fraud, accidental double payments, or other financial errors.

Process

Locate the Check: Find the check you need to void.
Use a Pen: Use a blue or black ink pen. These inks are less likely to be erased or altered.
Write “VOID”: Write the word “VOID” in large, bold letters that cover most of the “Pay to the Order of,” “Amount,” and signature spaces, but do not cover the check number, the routing number, or the account number printed on the bottom of the check.
Record the Voided Check: Note down the check number, date, and the reason for voiding it in your check register.
Inform Relevant Parties: If the check was already given to someone or sent for payment, you will need to inform the payee that the check has been voided and arrange for an alternative form of payment.
Store or Destroy: Store the voided check safely, or shred it if you’re sure you won’t need it again for record-keeping.

Practical Example

Let’s say you’ve written a check to pay your electricity bill, but then you realize you’ve made an error in the amount. To void the check:

Take the erroneous check and a blue or black ink pen.
Write “VOID” in large letters across the “Pay to the Order of” line, the amount box, and the signature line.
In your check register, record the check number (e.g., #1023), the date, and note that it was voided due to an incorrect amount.
Inform the electric company about the voided check and ask how they’d prefer to receive the corrected payment.
Either store the voided check in a safe place or shred it.

Possible Issues and Problems

Reissuing Checks: If a voided check was intended for a payee, you’ll need to write a new check, which can delay payments and incur late fees.
Lost Checks: If you’ve sent a check that you then need to void but can’t physically retrieve, you may need to request a stop payment from your bank, which typically has a fee associated with it.
Direct Deposits and Automatic Payments: If you void a check used to set up direct deposit or automatic payment, you may disrupt the transaction process and will need to provide a new voided check or alternative account details.
Potential for Fraud: Voided checks still have your account and routing number on them. If they fall into the wrong hands, they could be used for fraudulent activities.
Accounting Errors: Failing to record voided checks can lead to discrepancies in your financial records, making it harder to balance your checkbook or leading to overdrafts if you’re not careful.
Bank Policies: Different banks may have varying policies about handling voided checks, and some might not honor a voided check if it isn’t reported to them in a timely manner.

By following best practices when voiding a check, you can minimize risks and avoid potential financial pitfalls.