![]() ![]() ![]() Technically, a financial institution guarantees cashier’s checks and certified checks. Here are answers to several frequently asked questions about cashier’s and certified checks: Who guarantees a cashier’s check and a certified check? Ignore any “free” prize offers that require you to pay money.Resist pressure to send back the money right away or return “excess” funds by wire transfer.Electronic payment methods may provide more protection than cashier’s or certified checks. When buying or selling online, consider using electronic payments instead of paper checks.Contact the bank or credit union that issued the check to verify its authenticity.If you’re being paid for something that was sold online, don’t ship the purchased item until you have confirmed that the check is legitimate.Ask that a cashier’s or certified check come from a local financial institution or a financial institution that operates a local branch.Reject a check that’s made out for more money than was supposed to be paid.Be wary of accepting a check from someone in another country.Be careful about taking a check from anyone you don’t know.To avoid cashier’s or certified check fraud, follow these nine tips: In this case, the buyer manages to swipe the extra money and the seller is likely held liable for the stolen funds. Often, the buyer may insist the money be sent right away-due to a family emergency, for instance.Īfter depositing the cashier’s check into their account and wiring the extra money to the buyer, the seller’s financial institution delivers the bad news: The check is fake. Then, the buyer asks the seller to send back the extra money through a wire transfer after depositing the check. The buyer agrees to send a cashier’s check for the purchase but makes it out for an amount higher than the sale price. One common scam tied to cashier’s checks involves a transaction between an online buyer and seller.Ī fake buyer offers to buy an item advertised online by the seller. What’s a certified check?Īlthough cashier’s and certified checks are usually safe ways to make payments, they aren’t completely fraud-proof. “CASHIER’S CHECK” is normally printed at the top of the check, while information at the bottom of the check includes the financial institution’s routing number and account number.Ī cashier’s check generally doesn’t come with dollar limits, meaning it can be written for any amount, but they’re often used for purchases of $1,000 or more. ![]() The check displays the name of the financial institution, the name of the person or business being paid and the dollar amount. In many cases, only a customer can get a cashier’s check from a financial institution.Ī financial institution may charge a fee-perhaps up to $20-for a cashier’s check. You can get a cashier’s check at the branch of a bank or credit union, or you may be able to order one through a financial institution’s website or mobile app. ![]() The check is written to a third party, such as a title company that’s handling a home purchase.Ī representative of the financial institution, not the account holder, signs a cashier’s check. When a customer obtains a cashier’s check, the financial institution shifts money for the check from the customer’s account to the bank’s or credit union’s account.
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