#direct-deposit

#direct-deposit

Voiding a check might seem like a small task, but it carries financial and security implications. Many people void checks when setting up direct deposit, paying bills automatically, or linking a bank account to a new platform. However, mistakes in the process can lead to lost time, rejected forms, or even fraud. Understanding how to void a check correctly and what not to do can save you from unnecessary headaches.

The federal government has been trying to rid itself of paper checks and reap the cost benefits of electronic payments for years. "Electronic payments such as direct deposit are safer than checks, allow quicker access to funds, and have less risk of fraud," Fiscal Service Chief Disbursing Officer Linda Chero has said previously. "With paper checks over 16 times more likely to get lost, stolen, altered, or delayed, we encourage those still receiving paper checks to make the switch today."