Can You Cash a Voided Check? What Happens If You Try?

Checks serve as a method for transferring funds from one bank account to another. They function as a written order directing a bank to pay a specified amount of money to the designated recipient. A check can be intentionally marked to prevent its use for payment, a process known as “voiding” a check.

Understanding a Voided Check

A voided check is deliberately invalidated, making it unusable for any financial transaction. This is achieved by writing “VOID” in large, clear letters across the check, often covering the amount, payee, and signature lines. This action communicates to any financial institution that the check holds no monetary value and cannot be cashed or deposited.

Once voided, the check becomes a non-negotiable document. While it still contains banking information like the routing and account numbers, the “VOID” marking prevents funds from being withdrawn or transferred. This ensures that even if the check falls into the wrong hands, it cannot be fraudulently used.

Common Uses for Voided Checks

Despite being unusable, a voided check serves administrative purposes, primarily for securely sharing bank account information. Its function is to provide accurate routing and account numbers to third parties without the risk of unauthorized transactions.

A common application for a voided check is setting up direct deposit for paychecks. Employers request a voided check to ensure they have the correct banking details to electronically transfer an employee’s salary, minimizing errors that could delay payment. Voided checks are also used to establish automatic bill payments, allowing recurring expenses like utilities, rent, or loan repayments to be debited directly from an account. This method provides a secure way to share necessary banking information for Automated Clearing House (ACH) transfers or for linking external accounts.

Consequences of Attempting to Cash a Voided Check

Attempting to cash or deposit a voided check will result in the transaction being rejected by any financial institution. Banks and credit unions refuse checks clearly marked as “VOID,” as they are invalid for payment.

While not considered a fraudulent act because the check’s invalidity is openly stated, attempting to process an invalid item can have minor repercussions. The financial institution may impose a returned item fee on the person attempting the deposit or cashing. These fees typically range from $10 to $40, depending on the bank’s policies. This fee compensates the bank for the administrative effort involved in processing and rejecting the invalid item.