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What is a Void Check?
A void check is a check that has the word “VOID” written across it, preventing anyone from filling it out or using it to make a payment. Despite the inability to use a void check for direct payment, it holds valuable information, including the bank’s routing number, your account number, and your bank account’s name.
Uses of a Void Check in the Trucking Industry
Void check in trucking industry is often used to set up electronic transactions. Here are a few ways they can be used:
Direct Deposit: For trucking companies, setting up direct deposit for drivers is a common use of a void check. The information on the check ensures that the deposited funds go to the correct account.
Automatic Payments: Void checks can be used to set up automatic payments, such as loan payments or recurring expenses like insurance premiums. This can be useful for trucking companies with ongoing financial obligations.
Payroll Services: If a trucking company uses a payroll service, a void check may be required to set up the account.
Expense Reimbursement: Some companies may use the information from a void check to set up electronic reimbursements for drivers‘ on-the-road expenses.
Creating a Void Check
Voiding a check is simple:
- Take a blank check from your checkbook.
- Write “VOID” in large, bold letters across the front of the check. Ensure the word doesn’t obscure the bank’s routing number or your account number.
- Record in your check register that you voided the check, along with the check number, to keep track of it.
It’s important to note that once a check is voided, it can’t be used for payment. However, the information it contains can still be used to set up electronic transactions.
The Bottom Line
Void checks, while simple, play an essential role in managing financial transactions in the trucking industry. They provide a secure way to share banking information without risking unauthorized payments. As with many aspects of financial management, understanding the function and proper handling of void checks is key to ensuring smooth, accurate transactions and overall financial operations within a trucking business.
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