Which term best describes the cancellation of a check?

The term that best describes the cancellation of a check is "cancelled check." When a check is cancelled, it means that it has been processed by the bank, and the funds have been transferred from the drawer’s account to the payee’s account. The cancelled check serves as proof of payment and shows that the check was cashed or deposited. This term specifically delineates a check that has been fully processed and cannot be re-used for payment, highlighting its final status in the banking process.

In contrast, a void check refers to a check that has been marked invalid before it is processed, often used for providing bank details without the intention of cashing. A cleared check indicates that it has completed the process of being honored by the bank, meaning that funds have been successfully transferred; however, 'cancelled' specifically denotes checks that were initially issued and then processed as completed transactions. Lastly, a paid check is somewhat analogous to a cleared check but is less frequently used and does not distinctly convey the process of cancellation like 'cancelled check' does.