Cashier's check

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Cashier's check (cashier's cheque, banker's cheque, bank cheque, official cheque, teller's cheque, banker's draft or treasurer's cheque) is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.[1] Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount. They are commonly required for real estate and brokerage transactions.

A customer asks a bank for a cashier's check, the bank debits the amount from the customer's account immediately, and then the bank assumes the responsibility for covering the cashier's check. This is in contrast with a personal check, where the bank does not debit the amount from the customer's account until the check is deposited or cashed by the recipient.

Cashier's checks deposited into a bank account are usually cleared the next day. It is the customer's right to request "next-day availability" when depositing a cashier's check in person.[citation needed]

A cashier's check is different from a certified check, which is a personal check written by the customer and drawn on the customer's account, on which the bank certifies that the signature is genuine and that the customer has sufficient funds in the account to cover the check.[2] And it should not be confused with a counter check, which is a non-personalized check provided by the bank for the convenience of a customer in making withdrawals or payments, but which is not guaranteed and is functionally equivalent to a personal check.[3]





Due to an increase in fraudulent activities, starting in 2006 many banks insist upon waiting for a cashier's check to clear the originating institution before making funds available for withdrawal. Personal checks will thus have the same utility in such transactions.[4]

Legal definition[edit]

In the United States, under Article 3 of the Uniform Commercial Code, a cashier's check is effective as a note of the issuing bank. Also, according to Regulation CC (Reg CC) of the Federal Reserve, cashier's checks are recognized as "guaranteed funds" and amounts under $5,000 are not subject to deposit hold, except in the case of new accounts. The length of a hold varies (2 days to 2 weeks) depending on the bank. It is not clear what length of time may pass before a bank can be held responsible for accepting a bad cashier's check.



Alternatives and risks[edit]



Counterfeit money orders and cashier's checks have been used in certain scams to steal from those who sell their goods online on sites such as eBay and Craigslist.[4] The counterfeit cashier's check scam is a scheme where the victim is sent a cashier's check or money order for payment on an item for sale on the Internet. When the money order is taken to the bank it may not be detected as counterfeit for 10 business days or more, but the bank will deposit the money into the account and state that it has been "verified" or is "clear" in about 24 hours. This gives the victim a false feeling of security that the money order was real, so they proceed with the transaction. When the bank does find that the money order is counterfeit and reverses the account credit many days later, the customer will usually have already mailed the item. In many cases the "check" or "money order" is for more than the amount owed, and the victim is asked to refund the difference in cash.[5]

See also[edit]


  1. ^ "Cashier's check". Merriam-Webster Online. Retrieved 22 November 2012. 
  2. ^ "Certified Check or Cashier's Check -- Which Is Better for You?". Credit Today. Retrieved 22 November 2012. 
  3. ^ "Counter check". The Free Dictionary. Retrieved 22 November 2012. 
  5. ^ "Fake check scams". Internet Fraud Watch. National Consumers League. Retrieved 22 November 2012.