Some people do some mistakes on their cheque for them it is necessary to know what is a cancelled check?
A canceled check is cheque payment, in which the amount is deducted from the account holder’s account. But it is not given in cash payment and is transferred to the bank account.
The check is stamped as a canceled check as the person receives the cash.
If the bank stamp a check cancelled , it will be no more of use,
The cancelled cheque is not essential for any other payment.
Some activities to cancel a cheque are as given below
- The payee should receive the payment.
- The check should be endorsed.
- The cash deposited will be from the payee’s bank.
- It should be paid to the payee bank by the drawee bank.
- It is the responsibility of the bank to credit the money into the payee’s account.
Payer has the option to verify his check; either the cheque has classifies as a cancelled check. The bank must update the online record. Its a proof from the bank to his account holder that the payment has been debited through the cheque.
All the information is already mentioned in the monthly bank statement as sent on by e-mail.
So the cancelled check is proof by the bank to account holder.
How do you get a Cancelled Check?
Now the question arises on how to get a canceled check. You have to visit your nearest bank to get the knowledge and procedure too about the canceled check.
The bank will ask you for some documents from your side as a procedure of bank, which may include a photo/ID card and account number. So it is essential to provide them with these documents.
Difference between Cancelled Check and Voided Check:
What is a cancelled check, and what is a voided check? The main difference between the voided check is a check-in case of written mistakenly or by any error.
But the Cancelled check is a check which when presented to any company etc. in return the bank is responsible for giving the payment for the canceled check.
Uses of a Cancelled Cheque:
A Cancelled cheque is beneficial for several reasons.
A canceled check is beneficial while taking any loan, as the bank will also ask you for the submission of the cancelled check.
- A canceled check is also essential to pay your bills etc.
- Investing in mutual funds, you always require a canceled check.
- You can also purchase an insurance policy by canceled the check.
What is a canceled check and how an ordinary cheque is made a cancelled one?
The method to make a check cancel, you need to draw parallel lines on it and write canceled. The benefits of a cross-check or cancel check is that it couldn’t be encashed.
The payment will directly be transferred to the account whosoever you want to pay. It is essential to use a black or blue pen. This cheque has no risk.
The money deducted from your bank account will be credited to the person’s account you want to pay.