It’s easy to see what happened in your checking account’s transaction history. That transaction will be there whenever you need to reference it. You don’t need to manually write down details about payments, save pay stubs in a file cabinet, or otherwise https://www.bookstime.com/articles/accounting-and-bookkeeping-services keep track of paperwork. Direct deposit is an electronic payment from one bank account to another. For example, money may move from an employer’s bank account to an employee’s bank account, although there are several other ways to use direct deposit.

• Because checks have important bank information on them, be sure to void them correctly when you don’t want to use them.
• As a consumer, you can use the same technology to avoid using checks, paying for postage, and getting bills into the mail on time.
• Employers often use voided checks to set up direct deposits for their payroll, and service providers may need them to set up direct debits.
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• If you’re depositing a check, sign and date the back where directed.
• If you don’t have any checks, and you want to set up a direct deposit or automatic electronic payment, there are other ways to do so.

Convenience has helped make them a common banking feature, and direct deposit information is usually made readily available by most employers and financial institutions. Getting your first paycheck and heading to the bank to deposit it is thrilling. Having to go to the bank every time you get paid, however, may quickly lose its shine. Thankfully, most bank accounts come with a direct deposit feature.

Things You Should Know If You Withdraw More Than $5,000 From Your Checking Account

Voiding a check is as simple as writing “VOID” in large letters across the front of the check, but there are a few other things to keep in mind. Follow these three steps to achieve a properly voided check. When voiding a check, it’s fine if the word “VOID” covers the entire front of your check and obscures the Date, Pay To, For and Signature lines. You can also write the word “VOID” on each of these lines instead if you prefer. You may need to void a check if you wrote a check and made a mistake. If you write the wrong dollar amount, then you’d have to void the check to keep anyone from cashing it or depositing it.

If you’re going to receive payments from an employer electronically, you can send them a voided check, so they have all of your bank information. Depending on how your employer sets up direct deposit, you might have the option to connect directly to your bank account through your company’s payroll website. Just enter your bank information instead of supplying a voided paper check. A voided check is a check with the word “VOID” across it, which indicates that it shouldn’t be used for payment. It’s typically written in large letters, so it cannot be mistaken for cash use.

How Safe Is Voiding a Check for Direct Deposit?

Employers often let workers set up direct deposit instead of receiving a physical paycheck, and a voided check speeds the process. When you write the word “VOID” on a blank check, it becomes a voided check. This type of check is not used for deposit or cashing purposes.

•   Reasons to void a check include setting up direct deposit with employers or government benefits and establishing automatic bill pay. Employers often need a voided check for an employee’s payroll direct deposit to be established. void check meaning Direct deposit is America’s preferred way to get paid, according to a 2020 American Payroll Association survey. In fact, 94% of respondents would rather have direct deposit to ensure they get paid on time than a paper check.

Government benefits

SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website. Write down the total amount on the deposit slip if you’re depositing cash.