We all know what a check is, but have you ever heard of a void check? Contrary to popular belief, it’s not a fake check but an essential piece of document needed for various financial processes. Void checks are regular checks which have the VOID mark written across it, which means that it’s not usable and only for the purposes of authentication. Its importance lies mostly in validating banking information, setting up direct deposits, automatic billing, and more.
In this comprehensive guide, we’ll be diving deep into what fillable voided checks are, how they work, and their importance.
What is a Void Check?
Void checks are precisely what their name implies, checks voided for transactions and for validation purposes only. They are personal or business checks written out to VOID instead of a specific person or entity, and the bank account number and routing number are still written on them. The VOID written on the face of the check, with large letters, indicates that the check is not financially valid and is only being used for specific purposes, identifying the account, or verifying the account’s information in the case of a direct deposit setup.
How does a Void Check Work?
Void checks work as proof of identity when providing accurate banking information. When setting up any automatic bank transfer, lenders or billing companies will require proof of account identification, and a void check satisfies this requirement perfectly. It displays the account holder’s name, routing number, account number, and all the information necessary to complete a transaction. So, you don’t need a new check every time you set up a new recurring payment since a voided check containing all the necessary details will suffice.
Direct Deposit and Void Check
One of the most common reasons for issuing a void check is to set up direct deposits. Direct deposit is an electronic payment method where your employer, government agency, or pension plan deposits your salary or payments directly into your bank account. Most employers will require your bank account’s information, i.e., routing number and account number, and a voided check. The voided check provides the necessary documentation required to connect the transaction with the correct account, ensuring accurate payments.
Automatic Billing and Void Check
With automatic billing, recurring payments are deducted automatically from your bank account. For example, you can set up automatic payments for utilities, insurance premiums, subscription services, and more. Automatic billing may be required to have a voided check to ensure that the process is not missed or that the money is not taken from the wrong bank account.
In conclusion, a void check provides an added layer of security and identification when it comes to banking transactions. When you give someone a void check, you provide them with everything they need to deposit or withdraw money from your account but, with the peace of mind that the check can’t actually be used. When setting up automatic payments or direct deposit, it’s crucial to use a voided check to confirm and verify the banking information.
So, if you haven’t got one already, make sure you have a few voided checks on hand. Not only is it necessary when it comes to financial transactions, but it can help you save time and effort in the long run. It’s a small but essential piece of documentation that can make a big difference in the accuracy and security of financial transactions.