What is a Cashier’s Check?

A cashier’s check is a form of payment that involves a check that’s written by the issuer’s bank and drawn on that issuer’s funds. They are also referred to as official checks, teller’s checks, bank’s checks, treasurer’s checks, or banker’s checks. Cashier’s checks are widely considered one of the most secure and reliable payment methods, and are used in many business transactions.

Why Cashier’s Checks Are Used

A cashier’s check is very practical in situations where the buyer and seller may be geographically located in different places. Paying with a cashier’s check is a safe, instant, and easy way to complete a transaction. Buyers who rely on general checks to complete purchase transactions have the possibility that their payments may not be honored. With a cashier’s check, the funds are guaranteed.

Advantages of Using Cashier’s Checks

Cashier’s checks have a few advantages when compared to checks issued from an individual’s personal bank account. First, the payment is usually made with a certified check from the issuer’s own bank account, therefore the funds are immediately available. The issuer’s bank guarantees the payment, and the check is insured, which means that if the check is lost or stolen, the issuer’s bank will reimburse the original amount.

If you ever find yourself in need of making payment via check, opting for a cashier’s check over a regular check is most often the best choice. When compared to regular checks, cashier’s checks are much more secure, safer, and are more widely accepted in most businesses.