Ever accidentally write the wrong amount on a cheque, or realize you need to cancel a payment after already filling it out? It happens to the best of us. While cheques might seem a bit old-fashioned in our digital age, they’re still a common method of payment for many transactions, from rent and bills to services and contracts. Knowing how to properly void a cheque is crucial to prevent fraud, unauthorized use, and potential financial headaches. A voided cheque contains your bank account details, so secure and compliant handling is essential to protect your funds.
Improperly destroying or simply crossing out a cheque might not be enough to prevent someone from trying to cash it. A genuinely voided cheque ensures the information can’t be used for fraudulent purposes, giving you peace of mind. This short guide will walk you through the simple steps to correctly void a cheque and answer common questions on the subject.
What’s the Best Way to Void a Cheque?
Should I shred or keep a voided cheque after voiding it?
Generally, it’s recommended to shred a voided check after you’ve confirmed that the recipient has successfully used the voided check information to set up your payment details (like for direct deposit or automatic payments). Shredding it minimizes the risk of the check being misused, although the actual risk is quite low since the cheque is marked as void.
While a voided check is designed to be unusable for payments due to the prominent “VOID” marking, it still contains your bank account number and routing number. In the wrong hands, this information *could* theoretically be used for fraudulent activities, although it is unlikely given that most institutions require more information than just those numbers. Shredding it offers an extra layer of security, preventing someone from potentially altering or misusing the check in unforeseen ways. However, you might choose to keep a voided check for a short period as a record of the account information you provided. For example, if you set up direct deposit with a new employer, keeping the voided check until your first direct deposit is successfully processed allows you to easily verify the accuracy of the account and routing numbers if any issues arise. Once you are sure that everything is correct, shred the check to safeguard your banking information. In any event, make sure to store voided cheques securely before shredding or destroying them.