In this article, we’re sharing how to cancel a cheque. This will include the step-by-step process to cancel a cheque that has already been issued.
This article is part of our free series on sending money, including the ultimate guide to bank checks, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Cancel a Cheque?
- Reasons for a Canceled Cheque?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
How to Cancel a Cheque?
To cancel a cheque that has not yet been cleared, the issuing party can contact their bank and request a stop payment. That said, each bank has a different procedure for stopping payment, so it’s important to check which options are available to you.
In certain instances, canceling a cheque can be done over the phone or verbally in person by verifying account information. In other cases, a bank may require the issuing party to complete a cancellation form.
It’s also important to note that most banks charge a fee for canceling a cheque, though specific amounts will vary from bank to bank. In most cases, these fees can range from USD 20 to 30. With this in mind, you should confirm any applicable fees, including NSF fees, prior to issuing the stop-payment order.
Of course, if you have yet to deliver the cheque to the receiving party, you can proceed with manually voiding the cheque instead. This is possible even if you have already put the payment information, date, and signature on the cheque. To void a cheque, you simply need to write the word “VOID” across the face of the cheque in large block letters.
Now that we’ve shared how to cancel a cheque, let’s take a look at the reasons why a person may want to cancel a cheque in the first place.
Reasons for a Cancelled Cheque
There are a wide range of reasons for canceling a cheque, including obvious reasons like theft or loss of a physical cheque to more nuanced reasons like opening new financial accounts and needing to re-issuing existing cheques. We’ll take a closer look at a few of these reasons below, starting with a cheque being stolen.
Cheque Was Stolen
If a cheque was stolen, the issuing party will want to immediately report that the cheque was stolen to the issuing financial institution. In doing so, they will also request a stop payment for the cheque. This will ensure that the individual that stole the cheque is unable to cash the cheque and remove funds from the account of the issuing party.
Opening a New Bank Account
In certain instances, when an individual opens a new bank account they may be required to cancel existing cheques for future payment. This is common when paying for specific services with cheques, which can be the case in certain countries for utilities and other monthly services.
Other Reasons For a Cancelled Cheque
Another reason for canceling a cheque includes paying through an alternative method instead. If you have already issued a cheque but have decided to use a different way to meet the payment, you will need to cancel the cheque that has already been issued.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into how to cancel a cheque. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Can Someone Cancel a Cheque?
Yes, someone can cancel a cheque by contacting their bank and requesting a stop payment. After a stop payment is in place for the specific cheque, the cheque will no longer be valid or available for processing.
How Do I Write a Letter to Cancel a Cheque?
In most cases, you do not need to write a letter to cancel a cheque. Instead, if you contact the issuing ban, you may find that you can cancel a cheque directly over the phone or in person at a branch. Alternatively, the bank may ask that you complete a cancellation request form that includes all of the necessary information.
Is There a Way to Cancel a Cheque?
Yes, there are several ways to cancel a cheque. All of the possible methods involve a stop payment order by the financial institution where the cheque originates. The available methods typically involve contacting the bank over the phone, in person, or by submitting a cancellation request form.
What Does It Cost to Cancel a Cheque?
The cost to cancel a cheque varies from bank to bank. However, in most cases, the fees for canceling a cheque are between USD 20 and USD 30 per cancellation. That said, certain banks may not charge this fee, depending on the status of the account that you hold with the issuing bank.
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