How is a cashier's check different from a regular check? To begin with, it uses the bank's funds instead of the purchaser's funds so it is guaranteed by the bank. Cashier's checks are signed by bank representatives and are used when there needs to be a complete guarantee that the funds are available. Two examples of this could be for purchasing a car or a home.
What Else Should I Know About Cashier’s Checks?
Cashier's checks are obtained from banks and credit unions, and some banks do not issue them to people who are not account holders. To get a cashier's check, make sure your account has enough money to cover the amount and go to your local branch with some personal identification such as a driver's license. There are banks that allow customers to order cashier's checks online, but there may be delivery fees involved (some banks also charge for in-person cashier's checks).
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Since banks are not able to issue blank cashier's checks, the payee's name must be placed on it – be sure to have the correct spelling. It is also reassuring to know that cashier's checks are safe since they come directly from bank funds. They settle faster than personal checks, often as soon as the following day. Just as importantly, they can only be cashed by the specified payees and also have security features that help prevent fraud.
How to Cancel Cashier’s Checks
HelpWithMyBank.gov posts that customers are not able to order stop payments on cashier's checks. Sometimes cashier's checks get lost, but if the bank is contacted before the check is cashed, a replacement can be provided. In order to do this, the customer must obtain an indemnity bond from an insurance broker. This bond guarantees that the bank will not be responsible for two checks. This can be a long process, though, and may take up to several months to get the replacement check.
If you want to cancel cashier's checks that you have in your possession, your bank should be able to help you with this. They have their own policies regarding this, so it makes sense to reach out to them before taking any other actions. At Sun Trust, customers can bring uncashed cashier's checks back to their branches and get refunds. If the check is lost, there are forms that need to be completed for reimbursement; another choice is to wait 90 days and then fill out a "declaration of loss." Cancellation fees may apply for all of these.
About Cashier’s Check Scamming
Forbes advises consumers to be on the alert for cashier's check scams, which are more often committed on the payee side. Some thieves present fraudulent cashier's checks to purchase goods and services, or request cashier's checks for payment and never deliver the goods or services. The best way to avoid these problems is to only conduct transactions with payers that you trust. Also, if the check is missing details like the bank's routing number or it is smeared, it could be an obvious fake.
When receiving a cashier's check from a lesser-known source, make sure to verify the funds by contacting the issuing bank. Or, wait until it clears before providing the goods or services. Do not make any purchases or payments against these checks too soon, because if they are fake, they will bounce.
- Market Business News: Cashier’s Check – Definition and Meaning
- Bankrate: What is a Cashier’s Check? Definition, Uses, How to Buy One, Cost and Alternatives
- HelpWithMyBank.gov: Can I Put a Stop Payment Order on a Cashier's Check?
- Sun Trust: How to Cancel a Cashier’s Check that has been Lost or Stolen
- Forbes: Everything To Know About Cashier’s Checks