What is a Cancelled Cheque – Can you Cash a Cancelled Cheque?

What is a cancelled Cheque? Most time cancelled Cheque is confused with a returned check. Well, that should not be a thing of confusion anymore after this content has given you a good explanation of what a cancelled check really is.

What is a Cancelled Cheque

A cancelled Cheque is a Cheque that was successfully deposited and processed by your bank. Hence, when a bank approves a check and makes the payment, the Cheque is not allowed to be used anymore.

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What is a Cancelled Cheque

A cancelled Cheque is a Cheque that has been paid by the bank. After the money is deducted, from your checking account, the bank will “cancel” the check, so it can no longer be used.

Hence, it is referred to as a check that has already drawn funds from the designated account. In a bank statement, a customer may receive either his original cancelled checks showing that these checks have been paid.

How Does a Canceled Cheque Work?

Once a bank clears a Cheque through any means, it marks the Cheque as cancelled. From there, banks are not required to send you cancelled checks of them. Notwithstanding, some may provide a substitute check a paper copy of the front and back of your original Cheque as part of their agreements with account holders.

However, if your bank does not send you your cancelled check but you need one or more of them, you would have to contact the bank and request them.

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Cancelled Cheques VS Returned Cheques

Return Cheques are cheques that are declined or dishonoured by a bank. This could be because there is not enough money in the Cheque writer account or there is a wrong data entry. When a check is dishonoured, it will be returned to the payee who is known to be the owner of the bank account. For cancelled checks, they are already processed and paid cheques.

Why Does a Canceled Cheque Matter?

A cancelled Cheque is proof of payment. In many cases, customers have to request copies of cancelled Cheques if they get their monthly statement online instead of on paper.

It is important to be informed that you should keep cancelled checks hidden or securely stored. This is important due to the routing number and account number printed on the check can be used by identity thieves.

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How to Write a Cancelled Cheque

it is not a difficult task to write a cheque. It does not need extensive information, hence, anyone with a pen and all personal bank details in place can write a cheque. You can follow the steps below to write a cheque:

  • Ensure you are having a chequebook or slit.
  • Don’t write any information on the cheque, such as the payee’s name, the amount or signature.
  • Across the check, draw two parallel lines.
  • Between the two lines, write “CANCELLED” in capital letters.
  • Ensure that the parallel lines do not obscure any vital information, like the amount number IFSC code, MICR code, account holder name, bank name or locations.

When you follow the above carefully, you can able to write and cash your cheque.

Can you Cash a Cancelled Cheque?

When you place a stop payment you place it at the bank that holds the account, and the teller’s check scanners at the bank will recognize the check if anyone attempts to cash it. You could cash the check at another bank as the employees of that bank would have no idea that a stop payment had been placed.

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Cancelled Cheque VS Stop Payment Order

This may sound similar, but they are very different. Hence, when you put a steps payment order on your cheque, the bank will not honour the check when it is presented for payment.

Let’s consider this, you can pay a friend with a cheque and it got lost and you want to avoid a stranger finding it. All you have to do in that situation is request a stop payment on the cheques at your bank. On the other hand, cancelled cheques are a check which is already paid.

Should I Sign on a Cancelled Cheque?

It is not advisable for you to state your signature on a cancelled cheque as it can be prone to abuse or fraud. Hence, no procedure mandate you to submit a signed cancelled cheque. This is all for your well-being of you and also to secure your funds in your account.

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How can I get a Cancelled Cheque Online?

However. To cancel a cheque payment to someone, you must contact your bank. There is an option you can use to achieve that fit. Either you talk to your bank or submit a written request at the bank. You can opt for the online process as well, provided your bank offers an online facility for preventing a cheque payment.

Does a Cancelled Cheque Count as a Receipt?

A cancelled cheque service as a receipt for items purchased or bills paid. Cancelled checks also allow the account holder to track expenses and are essential for balancing the bank statement every month.

A cancelled cheque also allows the account holder to track expenses and is essential for balancing the bank statement every month. A cancelled cheque can also be used during an IRS tax audit to show proof of a charitable contribution or other deduction.



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