Cashier’s checks – overview, fees, and safety

Credit union members: if you use a credit union, you can often get cashier’s checks from almost any credit union location (not just your own credit union) with shared branching. Business brokers pa Bring ID and information about your “home” credit union, and call ahead to be sure the credit union you plan to visit offers cashier’s checks.

Online banks: some online banks provide cashier’s checks, but there’s obviously no bank branch to visit. Southeast business brokers Instead, you’ll usually need to request a check online, and the check will be sent to your verified mailing address.

Maine business brokers From there, you can forward the check to the payee (this process takes several days, so plan ahead). Business brokers australia Money Orders vs. Business brokers omaha Cashier’s Checks

Money orders are similar to cashier’s checks. Better business brokers They are considered “safe” forms of payment because they can only be purchased with cash (or cash-like instruments like a debit card or cash advance on a credit card). Business brokers india As a result, there’s no wondering whether or not the money order will bounce. Business brokers houston But money orders are not issued by banks. Business brokers canada Instead, they’re available from post offices, retail stores, and money transfer businesses. Florida business brokers license Money orders also come with maximum issue limits, so they might not be useful for large items like home purchases. Business brokers raleigh For more details, read about the differences between money orders and cashier’s checks. Business brokers indiana The Safety of Cashier’s Checks

If you’re getting paid with a cashier’s check, you may wonder how safe they really are. Business brokers texas Traditionally these checks have been among the safest checks to accept because the promise to pay is made by the bank issuing the check – not the person who hands you the check. South florida business for sale They are sometimes called bank drafts.

To dig deeper, compare a cashier’s check with a personal check. Michigan business brokers When you write a personal check, you’re supposed to have enough money in your account to cover the check. Business brokers illinois However, you may know that your check will be in the mail for a few days, that it will take the recipient a day or two to deposit the check, and that processing the deposit will take another few days. Business brokers hawaii Therefore, your account won’t be debited for several business days after you write the check. Vested business brokers complaints If you don’t have the funds available today, you can always hope that they’ll be there when it really matters: when the check is presented to your bank for payment. Sacramento business brokers So, you can write the check anyway, and you can probably walk away with merchandise in your hands. Business brokers south florida This practice is called floating checks (and it is illegal).

Unlike personal checks, cashier’s checks pull from your account when they are issued. Just business brokers This means, of course, that you can’t get a cashier’s check unless you actually have sufficient funds in the account or you bring cash to the bank. Utah business brokers Once the check is issued, the bank is responsible for paying the payee, and it’s difficult to cancel the check.

As a merchant, which would you rather get – a cashier’s check or a personal check? Of course, your odds of being paid are better with a legitimate cashier’s check. What do business brokers do Uncertain Payee

There may be times when you don’t know who to make a cashier’s check payable to. Georgia business brokers In those cases, you may need some extra creativity or patience. Business brokers virginia It’s very unlikely that the bank will issue a cashier’s check with the payee name left blank, and the same goes for getting the check made payable to “Cash.” Once a cashier’s check is issued, the bank is responsible for it, and most banks are unwilling to hand out blank checks. Florida business brokers association Cashier’s Check Scams

Unfortunately, not all cashier’s checks are legitimate. Sun business brokers They are regularly used in scams because sellers assume they’re 100% safe. Texas business brokers A typical scam involves somebody sending you a cashier’s check and asking you to do something with that money (if they want you to do anything besides keep it, watch out). Atlanta business brokers Unfortunately, your bank will let you withdraw money even if a check is bad (it just has to be a convincing fake). Canadian business brokers Typically, you’ll send money to a thief, and you’ll have no recourse except to try and find the individual yourself – which isn’t easy. Sunbelt business brokers lafayette la For full details, read How Cashier’s Check Fraud Works.

As a result of these scams, some banks are reluctant to cash cashier’s checks. The business brokers Federal regulations allow banks to place a hold on amounts above $5,000 (and banks can refuse to honor a check altogether if there is any reason to believe it’s fake). Sunbelt business brokers houston When are Cashier’s Checks Used?

Because of their relative safety, cashier’s checks are typically used for high-dollar transactions and transactions between people (or businesses) that don’t know each other. Business brokers wisconsin Instead of hoping that your buyer has funds available in their checking account, you can be more confident that a bank has enough cash on hand to pay what you need.

When you deposit a check, you might see the money in your account, but you can’t withdraw all of that money until the bank “clears” the deposit (with personal checks that might take several weeks, but with cashier’s checks and government-issued checks the funds are typically available immediately). Medical business brokers In a real estate transaction, nobody wants to wait for processing on a personal check – again it’s a significant asset being sold – so down payments are often made with a cashier’s check or wire transfer. National business brokers Likewise, brokerage firms may require settled funds for certain transactions, and cashier’s checks can be used there also.