Void check — 4 things you need to know

November 30, 2018 Michael Thomsett

You have probably heard about a void check which just means you made a mistake or decided to not make a payment. If you write ‘void’ over the face of the check and it is voided. But is that all there is to it?

No.

In fact, some clever check thieves have discovered that they can use stolen checks even if you write ‘void’ over it. The process is simple: The thief bleaches out the details of what was written on the check and replaces this information with their own, meaning the word ‘void’ amount of payment and payee name are all replaced.

Even with today’s largely electronic world, the use of printed checks has not gone away. We all need checks in working with a bank account. For example, when you call a plumber or electrician for a home repair, payment by check could be necessary. Some payments are made by mail as well, and you might prefer sending a check, versus mailing out a credit card number.

When you must use checks — void checks and vulnerability

These examples add to the vulnerability of personal information. Your bank’s identification and your account number are printed on every check. If the wrong person gets hold of this information, it is a simple thing to duplicate that information and clean out your account.

Even if you use printed checks only on occasion, there comes a time when you need to void a check. Some people can just shred checks and this solves a problem. But if you are running a small home business, for example, you might need to keep all of your checks, even the voided ones. This is the case when you have to account for every check number in the series of printed checks. So a voided check is accounted for by marking it ‘void’ and replacing it with another check. But there is more to it if you want to safeguard your account.

Here are some suggestions to avoid being victimized:

Void checks: the 4 key points

1. Tear off the signature portion. Yes, just tear off the bottom right-hand part of the check where you sign it. This makes the check truly unusable.
2. Also tear off the digitized numbers. This contains both your bank’s routing number and your checking account number. These two pieces of information are valuable to thieves when available together.
3. Make a photocopy of the voided check. Keep complete records, including a copy of any voided checks. This could come up if you have problems getting in balance with your bank.
4. Keep a detailed check register. Record all deposits you make and checks you write. Be sure to add back in the amount of any voided checks.

Void checks: using physical checks

These days we use few checks, if any. But some payments are made by check. In those cases, you either hand someone a check or mail it to them. So what is safer? Is sending a check by mail safer or more dangerous than making an electronic payment by credit card?

An advantage of credit card payments is that if someone gets your number and makes an unauthorized charge, you can challenge it and your credit card company will remove the charge. This provides a degree of protection, assuming you monitor your monthly statement and look for suspicious activity; and then challenge it and file a fraud claim.

When using your checking account, you can also get unauthorized check payments removed, but it is more difficult. It could involve many more steps than you need with misuse of a credit card. When this happens, go through the following steps:

Void checks and fraud: steps to take

1. Notify your bank immediately. When you see a charge on your bank statement that does not belong to you, get it touch right away with your bank. A fraudulent check can be reversed, but getting in touch with your bank is the first step. As the bank to put a freeze on your account so that no further uses will be allowed.
2. Notify the person or company that payment was made to. Dispute the charge and see whether they will reverse it. You might also need to contact local police and file a fraud complaint.
3. Set up a new account. Once your current information has been compromised, you will always be at risk. You need to move funds to a new account with your bank and pay for a new set of checks and deposit slips. This one-time expense is worth avoiding further fraud against you and your funds. Also be sure to change all automatic deposits and withdrawals to the new account.
4. Continue monitoring your account closely. Use the bank’s automated system to check recent checks and other activity, and make sure no new violations occur. Also keep an eye on your credit report and, if you use a monitoring service, alert that company about the fraudulent activity.
5. Avoid using ATMs. At least until you are sure a thief is not continuing to monitor your accounts, avoid using ATM or vending machines. This is a defensive move to prevent anyone from tracking where your funds are and how to get them.
6. Never use a debit card for online purchases. When you use a credit card or a payment service (like PayPal) any disputes are easily settled. But when you use a debit card, funds come right out of your checking account. If you decide to challenge a transaction or try to get a refund, using a debit card makes it more difficult. You will not have the protection with a debit card that you have when you pay with a credit card.

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