How to Properly Write a Canceled Check

To cancel a check, physically mark it to prevent its use for payment. This renders the check invalid and unusable, ensuring it cannot be cashed or processed through the banking system. Properly canceling a check safeguards against its unintended use while retaining access to its underlying account information.

Marking a Check as Cancelled

To properly cancel a check, use a dark, non-smudging pen to write the word “VOID” across the face of the check. Write “VOID” in large, clear letters spanning the entire check, from one side to the other. Alternatively, you can write “VOID” multiple times in the key areas of the check, such as the payee line, the amount boxes (both numerical and written), the date line, and over the signature line. This makes it unmistakably clear that the check is not intended for payment, ensuring no one can alter or cash it.

While making the check unusable, ensure the bank account and routing numbers remain visible and legible. These numbers, located at the bottom of the check, are often the reason a voided check is requested. For instance, when setting up electronic transfers, these details are extracted from the check. Therefore, avoid obscuring these magnetic ink character recognition (MICR) lines at the bottom.

When to Cancel a Check

One common situation to cancel a check is when an error occurs while writing it out. If an incorrect amount, a wrong payee name, or an inaccurate date is written, physically voiding the check prevents accidental issuance. This helps maintain precise financial records and prevents potential disputes over incorrect transactions.

Another frequent scenario involves employers or service providers requesting a “voided check” to set up electronic fund transfers. This is often required for direct deposit of paychecks or automatic bill payments. The voided check provides the necessary bank account and routing numbers without authorizing a payment from that specific check.

It is important to distinguish physical check cancellation from a stop payment order. Canceling a check is performed on a blank or incorrectly written check that is still in your possession. A stop payment order, however, is issued through your bank for a check that has already been written, mailed, or is otherwise out of your control. Banks typically charge a fee for stop payment orders, which can range from $20 to $35.

After Cancelling a Check

Once a check has been properly marked as cancelled, it is advisable to keep it for your personal records. This is particularly relevant if the check was voided to set up direct deposit or other electronic transfers, as it serves as proof of the information provided. Retaining cancelled checks can also be helpful for reconciling your bank statements.

If the cancelled check is no longer needed for record-keeping, secure disposal is important to protect your financial information. Shredding the check is the most effective method, as it prevents any potential misuse of your account and routing numbers. Simply tearing up the check may not be sufficient, as pieces could potentially be reassembled.