Certified checks and cashier checks are secure forms of payment anytime you need a secure or prepaid payment option.
You might be wondering why you would ever need to use a personal check or any type of check in today’s modern world. But you might be surprised! Checks are still a great way to make and receive payments. And it’s really not hard to learn how to cash checks, how to void checks, how to endorse checks, and how to balance a checkbook. Paper forms of payment can be a secure way to make a financial transaction and some organizations will still ask for them as a secure form of payment.
Cashier's checks are like a prepaid check you can buy at a bank or other financial institution that offers this service, while certified checks are a type of personal check. Both are a secure form of payment, but each is made secure in different ways.
If you have a certified check or cashier's check you need to cash, you're in luck! You can cash checks at any Check City store.
What is a Cashier's Check?
A cashier’s check is a type of check that is paid for by you but is written and secured by the bank. This is why it’s called a cashier’s check because a cashier or teller is the one who writes and signs the check, while you pay for the creation of this check. Funds are drawn from the bank after you pay for the cashier's check at the bank branch.
A cashier's check can also be referred to as a bank check or an official check. The benefit of a cashier’s check is that it is a form of payment guaranteed by the bank. So when the check recipient cashes or deposits the check, they aren’t pulling funds from your personal account, but from the bank that issued the check.
The benefit of this type of check is that the check writer doesn’t have to wait for the recipient to have those funds taken out of their account, and the recipient can be sure the funds will be available, since the check amount has already been paid.
How to Get a Cashier's Check
Step 1: Have your payment ready
The bank uses its own funds to pay for the cashier’s check. This means you’ll have to pay the bank for the cashier’s check at the teller window.
Be prepared to pay for the amount you want to put on the cashier’s check and for any cashier check fees the financial institution might have.
Step 2: Have the check information ready
The bank will print off the completed cashier’s check with all the details. So you need to have all the check details ready for them.
They’ll need to know the name of the check recipient and the amount of money you want to put on the check.
Step 3: Don’t forget the receipt
Once the financial institution prints out your cashier’s check, make sure you ask for a receipt.
This will allow you to track your cashier’s check if you need to. It will also give you documentation for your end of the check transaction.
What is a Certified Check?
A certified check is a type of personal check that is written by you, secured and guaranteed by the bank, and paid for with your personal bank account. This type of check is usually issued by the same financial institution that provides the checking account.
Basically, a certified check is a personal check that has been certified by the bank. This means that the check writer took the check to the bank, and had the bank verify that the account had sufficient funds for the check recipient.
Some banks will even stamp or mark the check in some way to show that it is certified. Another thing some banks will do to certify a check, is they will hold the check funds from the checking account to ensure the funds are available for the recipient.
The benefit of this type of check is that you can have the amount you need for the check set aside and you can present a certified form of payment to someone who can know with surety that the funds are there.
How to Get a Certified Check
Step 1: Make sure your personal account has sufficient funds
It’s also a good idea to call your financial institution and make sure they offer certified checks and ask about any certified check fees.
Step 2: Make an appointment at your bank or credit union
Bring your checkbook and personal identification with you.
At the bank appointment, you’ll write out the check, pay the certified check fees, and wait for the teller to certify and stamp your check.
Step 3: Deliver your certified check
Deliver your certified check personally or send it in the mail with a certified mail receipt and tracking options.
Both certified checks and cashier’s checks are a type of prepaid check, so they are difficult to cancel. This is because upon creation of the check, the funds are already paid by the check writer.
Certified Check vs Cashier’s Check
Certified checks and cashier’s checks are similar in that they are guaranteed, prepaid checks. In both cases, the bank employees can help you set up the check and you are responsible for paying the check amount.
But there are key difference as well.
A cashier’s check is created by the bank, the check writer pays the bank, and the bank pays the check recipient.
A certified check is created by the check writer, the check writer pays for the check with their checking account funds, and the bank certifies or holds the funds from the check writer’s checking account to ensure their availability for the check recipient.
Cashier's Check vs Money Orders
Certified checks and cashier’s checks are checks that your bank helps secure, guarantee, and verify so the check recipient knows the funds are already secured.
Money orders are similar to cashier’s checks and certified checks because they are also a prepaid, secure form of payment. But they are different from each other in that money order issuers can be other financial institutions outside of banks, like Western Union, and these institutions are the ones being paid by the payee to create a money order.
If you need to cash a money order or get a money order to make a secure payment, you can visit any Check City store and get a money order today!