What Is Cancelled Check;5 Facts You Must Know

A cancelled check is a check which you have issued and which your bank has paid from your account. There was a time when little holes were punched into such checks, but other forms of cancellation today accomplish the same purpose. A check that has gone through this procedure is also referred to as a check that has cleared. Cancelled checks may or may not be returned to you with your monthly bank statement. Some banks do this automatically; others make it optional.

Bank which do not return cancelled checks usually make copies available either free or for a nominal charge. Can- celled checks may serve at least two important purposes: (l) to enable you to double check the bank statement, and (2) as proof that you have made payment.

If you mark the bills you pay with the check number and date of payment, it is easy to identify the check as proof of payment. Conversely, when your records show an unpaid receivable which it is claimed has been paid, request copies of both the front and back of the cancelled check.

A canceled check is a check canceled by the account owner so that it is no longer valid. Checks can only be canceled by the account owner after the expiration of the expiration date with a letter of cancellation addressed to the interested bank with a minimum containing information about the check number, withdrawal date, nominal value and the date the cancellation starts.

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