When you’re expecting a big payment, you may wonder what’s the safest way to receive it. For example, you might be selling a high-ticket item to a stranger through Craigslist. And if you're the one who needs to make a large payment—for a down payment on a house or when purchasing a car, for example—the payee may request a more secure form of payment than cash or a personal check. Show
Both cashier’s checks and certified checks can be a secure way to pay, but you should be familiar with the signs of a check fraud scam any time you’re accepting one of these checks from someone you don’t know. And if you do suspect that an official check you’ve received and deposited into your account is fraudulent, contact your bank right away to minimize any fees you may be charged for insufficient funds or returned payments. The views expressed on this blog are those of the bloggers, and not necessarily those of Intuit. Third-party blogger may have received compensation for their time and services. Click here to read full disclosure on third-party bloggers. This blog does not provide legal, financial, accounting or tax advice. The content on this blog is "as is" and carries no warranties. Intuit does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. After 20 days, comments are closed on posts. Intuit may, but has no obligation to, monitor comments. Comments that include profanity or abusive language will not be posted. Click here to read full Terms of Service.  Save more, spend smarter, and make your money go further Sign up for Free When you need to make a large payment, whether for a car or closing costs on your new home, the vendor or merchant you need to pay might not accept a personal check. Why? Because personal checks aren’t always secure, and sometimes personal checks can bounce, which can result in the merchant or vendor not receiving their money. Instead, they may ask for a more secure form of payment, such as a cashier’s check. If you’ve been asked to make a payment in the form of a cashier’s check, you may not know what to do. Below, we answer some important questions, such as “What is a cashier’s check?” “How to get a cashier’s check,” “Where to get a cashier’s check,” and more, so you have everything you need to know about these types of checks.
What is a Cashier’s Check?If you’re wondering, “what is a cashier’s check?” the answer is relatively simple. A cashier’s check is a check that’s written by a bank using its own funds. Whereas a personal check uses funds from your own checking or savings account, a cashier’s check uses funds from the bank, which acts as a guaranteed form of payment because they aren’t likely to bounce. To write a cashier’s check, the bank will take money from your checking or savings account, transfer your funds to the bank’s own account, and write the check under their name. Because the bank uses their own money to back the check, it is more secure and trustworthy. How Do You Get a Cashier’s Check?Now that you know what a cashier’s check is, you may be asking yourself, “How do you get a cashier’s check?” Luckily, the process is relatively straightforward, and obtaining a cashier’s check shouldn’t take too much time out of your day. There are two ways you can get a cashier’s check, including from your bank or credit union, or online. Here’s where to get a cashier’s check: Bank or credit union If you’re part of a bank or credit union, you can go to their location in person and meet with the bank teller. When you ask the teller to write a cashier’s check, they’ll need some information, including:
Once you’ve provided the bank teller with all of the required information, they will transfer funds from your checking or savings account to their own banking account. Then, the bank teller will print the cashier’s check and sign it, and it will be good to go. However, if you’re not a member of a bank, you may still be able to obtain a cashier’s check. Some banks allow you to use cash as a form of payment, rather than a banking account. Depending on the bank, they might be able to write you a cashier’s check for the amount of money you bring in. Before you head to a bank, give them a call to see if they accept cash or not. Online Online banking is becoming more prevalent, especially among young adults, where 48 percent of adults aged 18-24 claim they use online banking weekly. The convenience of online banking makes it easy to order a cashier’s check, where big banks like Capital One require you to input the required information in order to send the cashier’s check to your address for you to deliver to the recipient. How Does a Cashier’s Check Work?Knowing how a cashier’s check works is important, as a cashier’s check can help you in a variety of scenarios. For example, if you need to pay off debt, a cashier’s check is a viable debt repayment option that can provide a secure form of payment for your lender that they can deposit into their bank account. A personal check has the possibility of bouncing, which can send you further into debt. The security of a cashier’s check is what makes it a reliable form of payment. However, obtaining a cashier’s check can come at a cost. When you go to your bank and ask for a cashier’s check, they may charge you a fee, averaging around 10 dollars. Chase Bank, for example, charges their customers an 8 dollar cashier’s check fee. On the other hand, Bank of America charges their customers a 15 dollar cashier’s check fee, unless they’re enrolled in Preferred Rewards, where the fee will be waived. So, before you go to your bank to get a cashier’s check, it’s worth calling ahead of time to see what their fee is and if they can waive your cashier’s check fee. Can You Get Scammed With a Cashier’s Check?Yes, there is a possibility you can get scammed with a cashier’s check. The Consumer Financial Protection Bureau’s Consumer Response Annual Report (2018) found that 27 percent of money services, money transfers, and virtual currencies complaints had to do with fraud or scam. As you now know, cashier’s checks are a secure form of payment, especially when bank tellers print directly onto the check to lower the possibility of forgery. However, this doesn’t mean fraud isn’t impossible. Some scam artists can create cashier’s checks using a bank’s information. Sometimes, a bank will deposit this forged cashier’s check immediately, thinking it’s legitimate, only to find out later it was a scam. Who becomes responsible for a forged cashier’s check? Usually, the victim. If you happen to deposit a forged cashier’s check, it clears, and you end up spending the money, you might be responsible for returning the spent money if it was found to be a scam. To prevent this from happening, you can call the bank where the cashier’s check was written and ask them if the cashier’s check legitimate or not. The Office of the Comptroller of the Currency warns against potential cashier’s check scams. Some potential scams that involve cashier’s checks include:
Additionally, cashier’s checks can be lost or stolen. If this happens, you may need to purchase an indemnity bond. Helpwithmybank.gov explains that if your cashier’s check is lost or stolen, you can buy an indemnity bond at an insurance company to ensure you are responsible for the second check, not the bank. Indemnity bonds can be difficult to obtain, which is why working with an insurance broker is advised. Once your bond has been secured, your bank may have you wait 30-90 days before they write you a replacement cashier’s check. Difference Between a Cashier’s Check and Money OrderAside from cashier’s checks, there are numerous other forms of secure payments available to you. One popular option includes money orders. Money orders are different from cashier’s checks in that you can purchase them at a variety of non-banking institutions, such as:
The FDIC found that 37.7 percent of money orders are obtained at grocery, liquor, convenience, or drug stores. When purchasing a money order, you can typically use cash or debit. Another difference between a cashier’s check and money order is that money orders can be easier to replace than cashier’s checks. Instead of obtaining an indemnity bond and waiting 30-90 days and asking your bank to write a replacement check, a money order can generally be replaced at your point of purchase with a valid receipt. A final difference between a cashier’s check and money order is that money orders often come with cheaper fees compared to cashier’s check fees. Chase Bank charges 5 dollars for requesting a money order, compared to their 8 dollar charge for cashier’s checks. The U.S. Postal Service only charges $1.25 for a money order for $0.01-$500 and $1.70 for a money order between $500.01-$1,000. It’s worth noting that most places that issue money orders set a cap at $1,000, whereas cashier’s checks can exceed $1,000. Key Takeaways on Cashier’s ChecksIf you were unsure about the questions, “What is a cashier’s check?” “How does a cashier’s check work?” and “Where to get a cashier’s check?” hopefully this guide helped. Bottom line, a cashier’s check is a check written by a bank using funds from their own account. Cashier’s checks are signed by a bank teller and guarantee payment by the bank, making them a secure form of payment that can be used for larger purchases such as a boat or a down payment on a house. If you plan to use a cashier’s check, you should also be aware of the potential risks associated with this form of payment, including cashier’s check scams. Finally, when considering which payment method to use, you should consider the differences between cashier’s checks and money orders to find the option that’s right for you. Save more, spend smarter, and make your money go further Sign up for Free
Written by MintMint is passionate about helping you to achieve financial goals through education and with powerful tools, personalized insights, and much more. More from Mint Can a cashier's check be cashed by someone else?The bank deposits those funds and then issues the cashier's check to the designated payee for the amount requested. The check cannot be cashed by anyone but the designated payee and settlement is usually quicker than with a personal check.
Can I cash an endorsed cashier's check?You can usually cash a cashier's check at the issuing bank, regardless of the amount it's drawn for once you endorse it, even if you don't have an account there. Alternatively, it's possible to cash a cashier's check at a check-cashing store, but there might be a fee.
How do you sign a check over to somebody else?Write “Pay to the Order of” and the third party's name below your signature. It's important to write the name of the person that you are signing the check over to in the endorsement area under your signature. This signals to the bank that you are endorsing the transfer of ownership for the check.
Do cashiers checks have to be written out to someone?Cashier's checks are drawn on a financial institution's funds, but you supply the check amount (in the form of cash or as a withdrawal from your account) to your bank ahead of time. You'll also need the name of the "payee," the business or person you are paying, since you can't get a blank cashier's check.
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Can i sign over a cashiers check
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