The Future of Voided Checks in The Digital Age

Voided checks are something on an anomaly in US finance. A recent survey by Yahoo Finance revealed that almost 50 percent of Americans have not written a check in the past year and the majority of millennials and Gen-Zers do not even own a check book. Yet Americans who start a new job, take out a loan or set up a mortgage will invariably be asked to hand over a voided check to verify their identity and provide their bank details. Here, we will look at the current role of voided checks in contemporary America, and we will also consider what the future might hold.

Using a voided check generator

Providing a voided check might sound like something of a conundrum in this age of digital banking and contactless payments. This is especially so for the 60 percent of American under-30s who do not even own a check book. An online tool like this generator from VoidedCheck is a simple and secure way of creating a voided check.

All they have to do is visit the VoidedCheck platform from their desktop or smartphone and enter their account details. The online tool then generates a correctly voided check that can be provided to the employer, lender or other body that has requested it. The platform is secure and is compatible with literally thousands of US banks.

Benefits of obtaining a voided check online

The most obvious benefit of using an online check generator is convenience. For those who do not own a checkbook, the only other alternative is to ask for one at the bank. This means standing in line to be served, and it also assumes that there is a branch somewhere nearby. That is by no means a certainty, given that the number of branches open in the US has fallen by more than 6,200 over the past three years.

But convenience is not the only advantage. Online voided check generators like the one mentioned earlier use the latest security and encryption technologies. So users can be confident that their data is protected and can also rest assured that the check has been voided correctly. This is less certain if someone who is unaccustomed to handling physical checks attempts to void one manually. In other words, any risk of a voided check being misused is mitigated by using an online tool.

Finally, it is worth noting that online generators are highly aligned with the needs of the smartphone generation. All the user needs is an internet connection in order to visit the site from a mobile device and generate a voided check almost instantly.

What does the future hold for voided checks?

It is impossible to say for sure what the future holds, but we can get some clues by looking at other major economies. Using voided checks for verification purposes and to set up bank payments is a specifically American practice and is not commonplace in the rest of the world. Other countries, such as the UK and Hong Kong, have seen a shift towards digital platforms that allow information sharing and account verification without the need for a physical check.

It is almost inevitable that the US will follow, but this is unlikely to happen for several years. At present, voided checks are embedded in America’s financial infrastructure and are needed to manage risk and meet compliance regulations. So shifting away from voided checks is about more than introducing the necessary software and processes. It will require a wholesale shift in compliance regulations, and that will demand a complex process of drafting and approval by banks, regulators and even government. In the meantime, and for the foreseeable future, online voided check generators are a vital tool for providing voided checks in the digital age.