What is a Voided Check?

Definition: A voided check is a check that was cancelled by the owner and therefore is not valid. Voided checks have the word “Void” clearly written in front of them. If voided, a check cannot be deposited or paid.

What Does Voided Check Mean?

Although the primary purpose of a check is to facilitate a money transaction, voided checks exist for several reasons. One group of motives derive from errors or changes in the transaction. For example, some information was wrongly written or the check is not needed any more because the transaction was cancelled. But another common reason is simply to send reliable information about the banking account to another person or organization.

An illustration of this happens when a company needs to make an electronic charge to someone who purchased a service. The supplier wants to be sure that the charge will be made to the correct account and holder. In this case, the owner provides the supplier with a voided check where the required data is visible but at the same time avoids any misapplication. When reconciling bank statements, voided checks must be accounted for.

Certainly, voided checks are not very common in the current electronic era. Account holders increasingly use on-line platforms to make payments and tend to fill their banking information directly on web sites.

Example

Martha Schneider is a 68 years old lady living alone. She is making changes at her house to offer more comfortable spaces when grand children come to visit her. Mrs. Schneider decided to expand the dining room and therefore hired an experienced civil engineer to do the work.

She issued a check at the beginning with the total forecasted amount and kept it during three weeks. However, the final amount charged by the contractor was 5% lower due to some changes introduced in the process. Mrs. Schneider then voided the check and provided the worker with another check correctly filled.