Awhile ago I wrote an article about verifying a check in order to avoid check fraud. Since personal checks increase the chances of a check fraud, a cashier’s check is one of the best ways to avoid a bad check deposit. Not only is it hard to bounce, but also it is a secure method of payment.
In fact, it is better to get paid with this kind of check than any other. This is because banks guarantee flawless transactions with it. Hence, the importance of using it for any kind of transaction.
What Is A Cashier’s Check?
It is a bank’s check which cannot bounce, unless it is a fake one. Prior to banks issuing this kind of check, they make sure you have enough in your account before they make it out. In a way, a cashier’s check is deducted from a bank’s account before it is issued.
This is why you purchase this check from your bank or credit union with the paid amount printed on it. So, what is the difference between a cashier’s check and a personal check?
Funds on a personal check does not have to be confirmed before the payer issues it to you. As a result, it can bounce during a deposit. This is especially, when the payer does not have a sufficient balance in his or her account. In short, this is what makes cashing a personal check scary.
If this is so, just how reliable is cashier’s check?
It is extremely reliable. A bank guarantees any transaction with the check will go through. This is because it is directly connected to the bank’s own account.
In What Situations Might You Need A Cashier’s Check?
Whether you are requesting a check for services rendered or paying it out, a cashier’s check is necessary since it guarantees both sides are satisfied. The last thing anyone wants is a bad check. This is because of the consequences of depositing a bad check.
If you ever wondered what a cashier’s check is used for, here are some situations which warrant it.
1. A Large Transaction Case
A large transactions such a car payment or house purchase, rarely takes personal checks. This is because of the chances of the check bouncing on the seller. In regards to these kinds of transactions, a cashier’s check is needed. This is because the transaction is guaranteed to go through by issuing bank.
Besides, the sheer size of these transactions require checks signed by the bank. What this tells the seller, is you have the purchasing power to go on with a transaction. Otherwise, you will not be taken seriously.
2. A Time-Sensitive Transaction Case
If you want a transaction to go through quickly without a hold, a cashier’s check will do it for you. For personal checks, there is always a hold of two to three business days for your bank to verify funds. Sometimes, it can take a week if you have a bad banking history with your bank.
However, a cashier’s check takes care of the wait.
Simply put, the check clears immediately after deposit. The fund is available for you to use immediately. The reason is because it is a check signed by the bank; the issuing bank assures any cashing bank to make funds available immediately since there is sufficient bank fund.
3. A One-Time Transaction
If you just rendered a service to strangers, it is a great idea to get paid with a cashier’s check. This is especially, when your chances of seeing them again is low. Why am I telling you this, dear reader?
Personally, I have cashed some bad checks before. They bounced after deposit. And, my bank retaliated by taking away my check deposit rights for some time.
In both cases, the payers apologized for having insufficient funds. It could have been worse. In all, I think this could have been avoided with a cashier’s check.
Not that you cannot be scammed with a fake cashier’s check, you can. But, the chances of people paying you with a fake cashier’s check is low. This is given the huge legal consequences. In other words, they are very unlikely to get away with excuses.
Finally, these are the benefits of a cashier’s check. Such a check is safe for any kind of transactional situation. Its advantages can only be beaten by direct wire transaction.
Where To Get A Cashier’s Check?
How can you get a cashier’s check, good reader?
A lot of financial institutions give out such a check. These include any credit union, bank or eligible financial institution. I would advice to always get your cashier’s check from a bank or credit union. Not that other places do not work, but a bank signature carries weight.
Finally, there is not a cashier’s check limit. There is no maximum amount for a cashier’s check. As long as you have the available funds, your financial institution does not care. Having said, here is how much it costs to get a cashier’s check.
How Much Does A Cashier’s Check Cost?
The cost of the check varies from bank to bank. In fact, some banks do not charge for the fees when you have an account with them. An example is the Bank of America. Personally, my bank- Human Credit, charges about $2.00 for members and $10.00 for non-members.
Here are the costs of the check in these top ten American National Banks.
| Bank | Check Fees |
|---|---|
| Chase Bank | $8 |
| Bank of America | $15 |
| Discover Bank | $0 |
| Ally Bank | $0 |
| Citi Bank | $10 |
| PNC | $10 |
| Capital One | $10 in person. Online delivery costs about $20 with free shipping. |
| TD Bank | $8 |
| Wells Fargo | $10 in person. Online delivery costs about $18 with free shipping |
| BBVA | $2 |
Although these are the costs of the check, membership can get the fees waived. Here, the banks which offer this waiver include: Chase Bank, Bank of America, Citi Bank, Wells Fargo and PNC. If your bank is not listed here, you can call your bank to inquire about the fees.
Where To Cash A Cashier’s Check
Most check cashing places will cash this kind of check, since they know its payment is guaranteed. Here are places nearest to you where you can cash one.
- Your Local Bank
- Gas stations
- Big retail stores
- ATMs
- Checking cashing apps.
You can read where to cash a cashier’s check immediately for a detailed elaboration of what places need from you. Be sure to take a little cash with you to pay for the check cashing fee. Your bank and some check cashing apps will not charge you a fee to cash a check.
Finally, you can cash your cashier’s check instantly from Walmart. If you live where there is a Walmart, it is easy to just walk into one and walk out with cash. Just be sure to get with a legal form of identification.
How To Identify A Good Cashier’s Check?
What does a cashier’s check look like, my dear reader?
The check differs from bank to bank. However, one notable feature of such a check is everything is printed on it. It has features of a personal check, except the normal ink we use for writing a personal check. Every feature of the check is printed.
This includes the amount in word, receiver name, bank’s signature, remitter’s name and the check type. Although the print is a security feature, it is not enough. To verify a cashier’s check is legit, you have to call the issuing bank to confirm.
This is because great scammers are quite good at replicating bank checks. Therefore, it is important to go to the issuing bank. It is the only way you can tell if a cashier’s check is real.
Do not worry about banks, not answering any question you have concerning a check. Banks are obligated to answer questions concerning checks. Especially on the suspicion of their cashier’s check being a fake one. This is regardless of whether you have any account with them or not.
As long as it is their check, they will help you verify it. Additionally, take a form of identification with you before this process. Your driver’s license or national passport is required.
Can You Cancel A Cashier’s Check?
If it is a fake check, yes. Or else, it is almost impossible.
Due to bank’s guarantee of the availability of a cashier’s check fund, it is difficult to stop a transaction involved with it. As a result, a stolen check can be cashed with the appropriate documents. Not only a stolen cashier’s check, but also a forged one with known security features of a bank.
This is because cashier’s checks clear immediately. Banks are supposed to honor them, since they are one of the most secured forms of payment. Hence, why it is hard to stop transactions involved with such a check.
So, how can a cashier’s check be stopped in case of loss, theft or damage?
The best thing for you to do is report to the issuing bank. This is because banks have policies in place for such situations. Usually, it will take them about 90 days to do their investigation and get back to you.
At the end of the period, you may get a refund. Most times, banks will ask you to get something called an indemnity bond. An indemnity bond is an insurance which makes you responsible for another check loss. Once you get it, your bank will issue you a replacement check.
But, it is not easy to get this from insurance companies. I do not blame banks though, they have to cover their losses. No one likes to lose money twice. Am I right?
It is worthwhile to note, a customer who has a history of losing cashier’s checks may not get his or her money back. Banking policies differ from bank to bank. If you have any question, it is better to ask your bank prior to a cashier’s check purchase.
In Summary Of How A Cashier’s Check Works
It is important to get paid in this kind of check for services rendered. Not only does it eliminate the chances of a check bouncing on you, but also it guarantees you will get paid. Also, use this kind of check when you are paying someone.
This is especially, when you have a history of giving out bad checks due to insufficient balance. It will save you embarrassment, distrust or ridicule. I highly recommend you to make out or accept this kind of check during important transactions.
Whether it is a car’s downpayment or an apartment security deposit, a cashier’s check can save you a lot of headaches. With that said, these are the important things you need to know about a cashier’s check.
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