You may have been asked for a void cheque at some point. But what is it, and why do people request one? Employers, banks, or even landlords often request void cheques when someone needs to access funds from your account.
From needing to deposit money from your employer onto your account to renting an apartment with automatic payments set up – there are many common scenarios where having a void cheque available is handy. However, understanding what a void cheque is and how to make one might not be clear.
In this article, I’ll explain how void cheques work and how to make one quickly!
What is a void cheque?
A void cheque is a type of blank cheque rendered unusable. A void cheque is typically used to set up direct deposits, pre-authorized payments (such as rent or mortgage payments) or other automated payments.
The blank cheque is filled out with the payee’s name, address and bank account information but then marked “void” so that it cannot be used for any other purpose.
Why do I need a void cheque?
A void cheque can be used to facilitate an automatic payment or deposit. Payment authorization can be provided to a payee or financial institution to access your banking information without direct disclosure, which may protect you against fraudulent activity or identity theft.
Establishing these transactions can be advantageous in terms of time and effort. Employers, banks and landlords may request a void cheque to establish payroll deposits, direct deposits, automated payments or rental payments.
How to make a void cheque
A void cheque is a document that can be used as proof of an individual’s banking information. It includes the account holder’s name, bank name and transit number, financial institution number, and account number. To make a void cheque, you must contact your bank or financial institution for a cheque if you don’t already have one.
You can also print off a direct deposit information form and void the cheque from your online bank account profile.
In the last resort, you can create your direct deposit information form and endorse it yourself; you need the features from a VOID cheque which include;
- The name of the financial institution
- The bank transit number (5 digits )
- The financial institution number (3 digits)
- The account number (9 digits)
- Your name and address
Once the void cheque has been filled out, sign it and write “VOID” across the face. This ensures that no one can use the information for any other purpose.
Also Read: How to Write a Cheque
Can my bank provide a voided check?
Getting a void cheque from your bank is quite simple.
First, contact your bank or financial institution by phone, email, or in person. Inform them that you need to obtain a void cheque and provide them with the relevant information, such as your name, address, and account number. Your bank should then provide you with a form to fill out, which you must submit along with your request.
Once the form is processed, your bank typically mails you a void cheque. Therefore, it is vital to keep it in a safe place so no one else can access it and use it for fraudulent activity. Additionally, ensure that the “void” markings are visible on the cheque.
Once you have your void cheque, taking a few precautions is essential. First, ensure that the “void” markings are visible on the cheque and that the date is correct. Also, store the cheque in a safe place where anyone cannot access it. Someone who obtains access to your cheque could use it for fraud.
How to read a void cheque
A void cheque is a blank cheque marked as “void” for security purposes. This is done so the check cannot be used to withdraw funds from an account. In addition, void cheques are often used when setting up direct deposits or automatic payments, as they provide the bank information required for these transactions.
To read a void cheque, you will need to look for the following pieces of information:
- Account holder’s name
- Bank name and transit number
- Financial institution number
- Account number
The account holder’s name will be displayed in the top left corner of the cheque. The bank name and transit number are typically located in the upper right corner. The financial institution number can typically be found at the bottom of a cheque. The account number is located in the centre of the cheque.
Once you have this information, you can arrange direct deposits or automatic payments through your bank or financial institution. It is important to ensure that the information on the void cheque is accurate before it is used for any transactions.
What if I don’t have a void cheque?
If you don’t have a void cheque, other ways exist to provide your bank account information. For example, you may be able to use a pre-authorized debit form which is similar to a direct deposit form. Pre-authorized debit forms can be accessed online or at a bank branch.
Some banks provide the option to arrange electronic funds transfers through their online banking platforms.
Is there a difference between a void check and my direct deposit information?
No, there is no difference between a void check and your direct deposit information. Your direct deposit information usually referred to as “routing and account numbers,” is the same information that is printed on your void check. The only difference between the two is that a void cheque has been marked as “void,” so it cannot be used for any payment. You will need your direct deposit info for the CRA to receive a credit memo deposit.
Is giving a void cheque safe?
Giving a void cheque is generally safe. A void cheque is simply a paper cheque deliberately made unusable. In other words, it has been “voided” and cannot be used to pay for goods or services. It is typically used to provide banking information, such as an account number and routing number, to another party so they can make a direct deposit or automatic payment. Because the check is marked as void, it cannot be used to withdraw funds from your account.
When using a void cheque, it is essential to take certain precautions. You should check that the “void” markings are visible on the cheque and that the date is correct before submitting it. Additionally, storing the cheque in a secure place where no one else can access it would be best. This will help protect your bank information from being used for fraudulent activity.