When was the last time you used a cheque? Not a chequing account (like our No-Fee Chequing Account), but a cheque from your chequebook?
It might have been to pay rent or for a person-to-person transaction or gift. Or, it might have been a while since you’ve used one at all.
Payments Canada notes that we most commonly still use cheques for the above purposes, along with charity donations. The organization also says cheque use declined 28% from 2019 to 2020, the most recent year for which statistics are available. That’s a large decrease in one year and part of a much longer drop-off in cheque utilization.
While cheques aren’t as common as they once were, they can still a useful payment method. They’re also perfect for sharing certain information for payroll purposes or recurring payments.
Let’s take a closer look at how you might be asked to use a void cheque, the information contained in it, how to read a void cheque, and more.
What Is a Void Cheque?
A void cheque is simply a cheque clearly marked “VOID” across its front. This security measure ensures you can share banking information (your account number, the issuer’s financial institution number, etc.) safely.
How Do I Void a Cheque? Why Should I Void It?
When you void a cheque, you prevent its loss or theft from being used against you. Voiding stops criminals from accessing your bank account. They won’t be able to fill in the cheque to cash it or use it for payment.
All you have to do is write “VOID” clearly and in large letters on the front of the cheque. Be careful not to write over the numbers on the bottom of the cheque. That’s where you’ll find the information your employer or service provider needs.
You may be asked to share a voided cheque with an employer or another organization that will make payments to you — to set up a direct deposit. You can also use a voided cheque to establish recurring payments for some of your ongoing bills.
You could receive a request to share information from a cheque without providing an actual copy. It’s increasingly common for financial institutions to offer alternatives to sharing a physical voided cheque as well.
In cases where you need to provide a physical cheque, make sure you void it.
What Information Does a Void Cheque Contain?
A void cheque includes your name and address, as well as those of your financial institution’s local branch where you opened your account.
There are also several numbers on every cheque. The most common is the cheque number (the number that distinguishes that individual cheque from others issued to you).
The other three most important numbers to recognize, which are always in the following order from left to right at the bottom of a void cheque, are the:
- Transit number: This five-digit number is tied to your local bank branch or the branch that issues your cheques. A transit number is the same as the branch number on a void cheque.
- Financial institution number: This three-digit number identifies your bank.
- Account number: This is the longest number on the bottom of any cheque, although the exact number of digits can change from one institution to the next.
The transit number and financial institution number don’t uniquely identify you. However, your account number does. While a void cheque doesn’t present any danger to your finances, you should still be selective about sharing one. Make sure you trust the person or organization making the request.
What Information Do I Give for Direct Deposits?
To establish recurring payments or receive direct deposits, you’ll need to share all three numbers listed previously — the transit, financial institution, and account numbers. You will likely also have to share the address of your local branch.
Many financial institutions now offer digital alternatives to a physical void cheque. It’s common to have the option to print a void cheque or download a PDF that contains the same information.
Need a Void Cheque? Set Up a No-Fee Chequing Account!
Whether you regularly use cheques or every transaction is digital, why should a chequing account ever cost you money?
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