1. What Is a Void Cheque?
A void cheque is a cheque that is not accessible to payment. VOID is a word, which when written on a cheque invalidates it. This implies that no human being can cash or bank it. Voids cheques are utilized by individuals due to reasons that are unique such as providing their bank details without any danger.
A void cheque will still indicate such vital details as your bank account number and the branch number of the bank. This assists a company or a bank to establish payments to or out of your account.
Being aware of what a void cheque is, however, assists you to make the most of your bank without errors. It is an easy to use device that keeps your money safe and at the same time provides your banking information.
2. What Is the Reason behind people using Void Cheques?
The use of void cheques helps in cases whereby you require giving your bank details, but then you do not want the cheque to be paid. As an illustration, when you desire to open a direct deposit of your salary, or automatic payment of bills, the companies will require a void cheque.
Your bank code and account number are displayed safely on this cheque. No one can steal money with it as it is void. It is also utilized once your intention is to begin automatic payments or transfers.
Now that you know what a void cheque is, you need not feel insecure in providing your banking information and ensure that payments are being made well.
3. How to Void a Cheque Properly
In order to cancel a cheque, simply take a blank or unused cheque in your cheque book. In big letters across the face of the cheque write the word VOID. Be sure to cover a majority of the cheque without concealing the vital numbers so as to be found at the bottom.
Do not sign the cheque or fill any other details. This ensures that your cheque does not get utilized in paying money, and yet your bank details appear.
Keep the void cheque in safe smart places and only submit the same to reputable companies or individuals. Getting to know the proper way to void a cheque secures your money and assists you in having bank details online in a safe manner.
4. What Does a Void Cheque Information Entail?
Although a void cheque cannot be paid, it presents some significant banking information. Below the cheque, there is your bank account number.
This will also include the branch number or the transit number of the bank and the main number of the bank. Such numbers enable the bank to have an idea of where your account is. The cheque also contains a print of your name and name of bank.
This is required to enable direct deposits, auto payments or electronic transfer. Learning about what is a void cheque will mean knowing that it is harmless to share your banking information without losing your money.
5. A Void Cheque: When and When Not to use it?
You are supposed to use the void cheque when a company or an employer requires you to provide your bank details so that they can send money to your account. You are commonly required to set direct deposits to your salary or benefits with the government.
It is also applied in establishing a mechanized bill payment such as rent, utilities or loans. A void cheque will enable the bank and company to acquire your precise account details. This is so as to ensure that the cash reaches the correct destination.
In case of lack of a void cheque, in some cases a direct deposit form can be used or a bank letter can be used. It is with the knowledge of when to use a void cheque that you can easily handle your money and payments.
6. Is it possible to pay bills using a void cheque?
No, you can not pay bills using a void cheque. As a void cheque is written VOID, it is not a cashable cheque or depositable cheque. It is simply a way of sharing your bank information in a safe way.
You will also require a valid cheque to pay bills or any other payment methods such as cash, cards and online banking. The void cheque is used to establish automatic payments however the payments are done using your bank account.
The knowledge of a void cheque assists you to know what is a void cheque and utilize the correct cheque or payment mode when transferring money.
7. The Difference between a Void cheque and a cancelled cheque?
There is a minor difference between a void cheque and a cancelled cheque. Both have the term VOID or CANCELLED written on them to prevent the cheque to be used as payment.
Nevertheless, void cheque is mostly applied in providing bank information to make payments. A cheque is usually cancelled to indicate that the cheque is nonrefundable. The two display your bank account. In some cases, individuals are using the terms interchangeably.
Learning about what a void cheque is and what is its difference with a cancelled cheque will make you know what document to use in your transactions with banks or companies.
8. Maximum Protection of Your Void Cheque.
This is because a void cheque contains your bank details and it must be kept secure. Do not share it with strangers and publish it. issue only void cheques to reputable companies or employers upon the occasion that they require the cheque to establish payments.
To secure your cheques keep your cheque book somewhere safe. In case you lose a void cheque, inform your bank to be aware of some suspicious transactions in your account.
Care in using your void cheque will keep you out of the fraud and identity theft trap. The knowledge of what is a void cheque also entails the knowledge of how to protect your individual banking information.
9. Digital Substitutes of Void Cheques.
There are also some banks and companies that enable you to post your bank details without the physical void cheque. There are online forms as well as direct deposit authorizations and bank statements that can be used to provide your account information.
Most banks have the online versions of void cheques available in print. These computer solutions are secure and quick. Nevertheless, there are still other places that require the use of a paper void cheque due to the security reasons.
The understanding of what a void cheque is and the online alternatives will assist you in deciding on the best option of transferring your bank details safely and conveniently.
10. Void Cheque Basics
| Term | Meaning | Purpose | Example Use |
| Void Cheque | Cheque marked “VOID” to stop use | Share bank details safely | Setting up direct deposit |
| Bank Account Number | Unique number for your account | Identifies your bank account | Printed at bottom of cheque |
| Transit Number | Bank branch code | Helps locate your bank branch | Printed at bottom of cheque |
| Cancelled Cheque | Similar to void cheque with “CANCELLED” | Proof cheque cannot be used | Bank verification documents |
| Direct Deposit | Payment sent directly to your account | Automatic salary or benefit payment | Employer payment setup |
Conclusion
Avoiding the risk of losing money is a very helpful tool that enables you to share your bank details through a very useful tool known as a void cheque. Writing VOID on a cheque prevents money being paid by the cheque yet it contains useful details such as your account number and bank code.
This will fit well in establishing direct deposits, automatic bill remittance or electronic transfers. Understanding what a void cheque is can make you secure your money and provide your banking details in the appropriate manner.
The void cheque should always be kept in a safe place and should only be provided to the trusted individuals or firms. Knowing about void cheques eases the money handling of a beginner.
FAQs
Q1: What is the primary intention of a void cheque?
Avoid making payments through a void cheque so that you can safely share your bank account information.
Q2: Could I pay bills with the help of a void cheque?
No, void cheque cannot be used to pay bills because it is inscribed as invalid to payment.
Q3: What is the proper way of voiding a cheque?
In plain words without writing over any significant figures write in large letters the word “VOID” on a blank cheque.
Q4: What is a void cheque? Is that a cancelled cheque?
They are like each other; however, mostly a cancelled cheque is used as evidence whereas a void cheque is utilized to exchange bank information insecurely.
Q5: Is it possible to submit bank details without void cheque?
Yes, there are banks where it is possible to use a digital form or a bank statement instead of a physical one.
