"Voiding a check might seem like a small task, but it carries financial and security implications. Many people void checks when setting up direct deposit, paying bills automatically, or linking a bank account to a new platform. However, mistakes in the process can lead to lost time, rejected forms, or even fraud. Understanding how to void a check correctly and what not to do can save you from unnecessary headaches."
"A voided check is used for one main purpose: to provide accurate banking details without enabling payment. It contains the routing number, account number, and bank name-information needed for employers, lenders, or service providers to set up transactions. Common reasons include: Linking bank accounts to investment or loan services. By marking the word "VOID" across the front, you disable the check's payment function but retain its informational value. Sounds simple enough but many people still make avoidable mistakes."
A voided check supplies routing and account numbers plus the bank name so payors can set up transactions without enabling payment. Mark VOID in large, capital letters with a permanent pen to render the check unusable for payment while keeping numbers readable for verification. Avoid covering critical banking details with heavy ink or markers so employers and payment providers can read routing and account numbers. Do not write faintly or in pencil to prevent alteration and misuse. Use online tools to create a voided-check image if no paper checkbook is available. Mistakes can cause delays, rejected forms, or fraud.
Read at London Business News | Londonlovesbusiness.com
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