If you have ever been asked to give a “void cheque” for automatic payments, you may have thought about what it is and how to make one. The good news is that voiding a cheque in Canada is easy, clear, and safe.
Understanding how to void a cheque is important for things like setting up direct deposits, handling automatic bill payments, or making sure your payroll goes to the right place. This guide will explain what a void cheque is, show you how to make one, and look at some new options.
What is a Void Cheque?
A void cheque is just a normal cheque with the word “VOID” written on it. When someone asks for a void cheque, they do not want to use it for payment. They need it for important banking details, like:
- The bank where your account is kept
- Your transit number, which shows your branch
- Your account number
These details help places, like your job or payment provider, to set up direct deposit payments or automatic withdrawals safely.
For example:
Imagine you are starting a new job in Toronto, and the company asks for a special cheque to put your pay directly into your bank. You would write “void” on the cheque and give it to them. They will take care of everything else!
How to Write a Void Cheque in Canada
Making a void cheque might feel complicated, but it is really easy. Here’s a simple step-by-step guide:
Step 1 Check your chequebook
If you have a chequebook, take out a blank cheque. Make sure the cheque is empty. It should not have any writing, like a date or a payee’s name.
Step 2 Write VOID across the cheque
Take a pen and write “VOID” in big capital letters across the front of the cheque. Make sure “VOID” covers important parts like the payee line, the amount box, and the signature line. But do not cover the numbers at the bottom of the cheque. These numbers show the bank and account details that the recipient needs.
Step 3 Double check your work
Review the cheque to make sure all the important areas are marked. Also, check that your details, like the numbers at the bottom, are easy to read.
And that’s it! Your void cheque is good to give to anyone who needs it.
When Do You Need a Void Cheque?
Void cheques are used in different ways in Canada. Here are some common situations where you might need one:
- Direct Deposits: For example, your job or Canada Revenue Agency (CRA) might ask for a void cheque to put your wages or benefits straight into your bank account.
- Automatic Bill Payments: If you want to set up regular payments, like for utilities or rent, you may need to send in a void cheque.
- Loan or Mortgage Payments: Banks might need a void cheque to take monthly payments directly from your account.
- Setting Up Investments: If you are planning to add money to an RRSP or TFSA, a void cheque helps make sure your transactions go smoothly into your investment account.
A void cheque is an easy way to make banking transactions smoother. It helps make sure that payments go to the right account.
Alternatives to Void Cheques
While many people still use void cheques, new banking options are available. If you don’t have a chequebook, think about these choices:
1 Direct deposit forms
Most Canadian banks offer direct deposit forms. These forms have the same important details as a void cheque. You can usually find these forms online or print them from your bank’s website.
2 Pre-authorized payment forms
Like direct deposit forms, some providers might have pre-authorized payment forms. These forms take your bank details straight from you without needing a cheque.
3 Digital banking information
Many banks in Canada let you send your account details safely by email, or through an app or website. Ask your bank to find out more about their online services.
4 Speak to your bank
If nothing works, you can go to your bank. You can ask for a printout of your account details. This can be used instead of a void cheque in many cases.
FAQs About Voiding a Cheque in Canada
Is voiding a cheque safe?
Yes, voiding a cheque is safe when you give it straight to the right person. The cheque can’t be used to pay anyone, so it is a secure way to share your bank information.
Can I void a cheque digitally?
Many banks in Canada offer digital options instead of void cheques, like direct deposit forms. Check with your bank to see what electronic choices they have.
Do banks charge for void cheques?
Banks usually don’t charge you for void cheques. But, if you want to get a new chequebook, there may be fees. Forms and online options are often free.
Setting up Finances Made Simple
Whether you’re setting up payroll, paying bills automatically, or arranging deposits, cancelling a cheque makes sure your banking details are moved safely and easily. And what if you don’t have cheques? Online banking has made it simple with digital options.
Looking for more money tips? Take a look at our guide about Canada’s bank accounts. You can also learn what makes transit and routing numbers different!