Cashier’s Checks: Definition, Benefits, and Real-Life Examples


Cashier’s checks, issued by financial institutions, provide a secure means of making large payments. This article explores the definition, benefits, drawbacks, and usage of cashier’s checks, as well as alternative payment methods. Understanding cashier’s checks is essential for anyone considering this method for financial transactions.

Understanding cashier’s checks

A cashier’s check, often referred to as a bank check or official check, is a financial instrument provided by banks and credit unions for secure transactions. Unlike personal checks, which are drawn from an individual’s account, cashier’s checks are backed by the financial institution’s own funds. When you request a cashier’s check, the equivalent amount is withdrawn from your account and held by the bank. The bank then issues the cashier’s check, which includes the names of both the recipient and the remitter, typically signed by a bank representative, often a teller. You will pay the full face value of the check and a small premium for this service.

Advantages of cashier’s checks

Cashier’s checks offer several advantages:

  • No bouncing: A cashier’s check cannot bounce, providing confidence to the payee that the funds are available.
  • Enhanced security: These checks are challenging to counterfeit due to watermarks and required bank signatures.
  • Rapid availability: Funds are usually available to the payee by the next business day.
  • Accepted without an account: Cashier’s checks can be issued by banks where you don’t have an account, although additional fees may apply.
  • Security priority: They are preferred for transactions where security is a top priority.

How cashier’s checks work

Individuals often use cashier’s checks for substantial payments, as they provide an assurance of funds. The process involves depositing the check’s amount into the issuing institution’s own account. The recipient is then guaranteed to receive the money when cashing the check. Typically, cashier’s checks are used for:

  • Making down payments on a home
  • Paying closing costs for a mortgage
  • Purchasing vehicles or boats
  • Buying land

These checks are not generally used for everyday spending to ensure their extra protection.

Receipt is key

Always request and retain a receipt when obtaining a cashier’s check. A receipt serves as proof of payment and is vital if the check is lost or stolen. In such cases, you can ask the bank to reissue the check, although they may require an indemnity bond, making you liable for its replacement. Receiving a new cashier’s check can also be a time-consuming process, depending on the bank.

Cashier’s checks may also be referred to as official bank checks.

Cashier’s checks vs. other payment methods

When a bank does not guarantee traditional checks, the risk of receiving a bad check is present. Cashier’s checks, on the other hand, eliminate this risk. Other payment methods include:

Traditional checks

Traditional checks are not guaranteed by the bank, which means they can bounce if the remitter’s account lacks sufficient funds. In contrast, cashier’s checks offer more security.

Money orders

Money orders are a secure form of payment that is typically less expensive than cashier’s checks. They can be purchased at various locations, including the post office, supermarkets, and some gas stations. However, they may not offer the same level of security as cashier’s checks.

Certified checks

Certified checks are essentially personal checks but are guaranteed by both the account holder and the bank. While they provide some security, they may not be as secure as cashier’s checks due to differences in watermarks and counterfeiting prevention.

Wire transfers

Wire transfers are electronic transfers of funds, eliminating the need for a physical check. They are efficient but can be more expensive and may take time for international transfers.

Social payment apps

These apps are suitable for transferring money to friends and family but may have limitations on the amount that can be sent in a single transaction.

Drawbacks of cashier’s checks

While cashier’s checks offer enhanced security, they come with some downsides. These include:

  • Higher fees: Cashier’s checks may have higher fees, making them less convenient for smaller transactions.
  • Bank account requirement: Obtaining a cashier’s check usually requires a bank account or upfront payment, making it challenging for individuals without an account.
  • Limited acceptance: Some businesses or individuals may not accept cashier’s checks due to authenticity concerns or delays in verifying funds.
  • Non-refundable: Cashier’s checks are non-refundable, meaning you may not receive a refund for the funds used to purchase them. Caution is essential when obtaining them.

In fact, the Federal Deposit Insurance Corporation warns about counterfeit cashier’s checks and suggests contacting appropriate authorities if scammed.

Examples of cashier’s check scams

Despite the security of cashier’s checks, scammers have devised various schemes around them. In one scam, a buyer overpays for a purchase with a cashier’s check and asks the seller to wire the excess amount to another party. After wiring the funds, the seller discovers that the check is fraudulent.

In another scam, victims are sent counterfeit cashier’s checks as part of a mystery shopper scheme, where they are asked to purchase items, wire funds to a third party, and keep the remaining balance as pay.

Obtaining a cashier’s check

You can obtain a cashier’s check at your bank, credit union, or other financial institutions where you have an account.

Cost of getting a cashier’s check

The cost of a cashier’s check varies by the institution, typically ranging from $5 to $15. Some banks may offer them for free to account holders.

Getting a cashier’s check without a bank account

While having a bank account is generally required, some institutions may offer options for non-account holders, albeit for an additional fee. Cashier’s checks can often be cashed without a bank account, though fees may apply.

Information needed to get a cashier’s check

To obtain a cashier’s check, you usually need to provide the recipient’s name, the check amount, and any additional required information specified by the issuing institution.

Cashier’s check validity period

The validity period of a cashier’s check varies, typically ranging from 60 to 90 days. After this period, the check may expire or require additional processing.

Common uses of cashier’s checks

Cashier’s checks are versatile and serve various purposes, making them an attractive choice for secure financial transactions. Here are some common scenarios where individuals and businesses use cashier’s checks:

  • Making rent payments: Landlords often prefer cashier’s checks for rent payments to ensure they receive funds promptly and avoid the risk of bounced personal checks.
  • Settling legal matters: Lawyers and courts frequently require cashier’s checks to cover legal fees, settlements, or court-ordered payments.
  • Buying high-value items: When purchasing expensive jewelry, art, or collectibles, buyers may use cashier’s checks to provide sellers with a secure and guaranteed payment.
  • Donating to charities: Donors looking to make substantial contributions to charitable organizations may opt for cashier’s checks to ensure their funds reach the intended recipients securely.
  • Government fees and services: Some government agencies may demand cashier’s checks for services such as obtaining a passport or paying certain fines and fees.

How to obtain a cashier’s check

The process of obtaining a cashier’s check is straightforward but may vary slightly depending on the financial institution. Here are the general steps to follow:

  1. Visit your bank or credit union: Start by going to the financial institution where you have an account. While some institutions may issue cashier’s checks to non-account holders, having an account can make the process more convenient.
  2. Provide the necessary information: You’ll need to fill out a cashier’s check request form, which typically includes details like the recipient’s name, the check amount, and any additional required information. Make sure you have this information on hand to streamline the process.
  3. Pay the check amount and fees: In addition to the check amount, be prepared to pay any associated fees. These fees can vary among financial institutions and may even differ for account holders and non-account holders.
  4. Receive the cashier’s check: After completing the necessary paperwork and making the payment, the bank will issue the cashier’s check. Ensure that all the details on the check, such as the recipient’s name, are accurate before leaving the bank.
  5. Keep the receipt: As mentioned earlier, obtaining a receipt is crucial. It serves as proof of payment and can be helpful if the check is lost or stolen.

Alternative secure payment methods

While cashier’s checks offer enhanced security, it’s essential to be aware of alternative payment methods that may suit your specific needs:

Electronic funds transfers (EFTs)

Electronic funds transfers, or EFTs, allow you to send money directly from your bank account to another individual or business electronically. They are fast and convenient, making them a viable alternative to cashier’s checks for certain transactions.


Cryptocurrencies like Bitcoin and Ethereum provide an alternative means of transferring funds securely. While they may not be suitable for all transactions, they offer advantages such as speed and low transaction costs.


For in-person transactions, using cash can be a secure option. However, this method is generally limited to smaller payments, as carrying large sums of cash can be impractical and risky.

The bottom line

In conclusion, a cashier’s check is a secure and reliable payment instrument issued by banks and credit unions. It guarantees payment to the recipient, similar to cash, by drawing funds from the institution’s account rather than the payer’s. While they come with certain fees and limitations, cashier’s checks are widely accepted for significant transactions such as real estate purchases.

Expanding on this knowledge is vital for anyone considering the use of cashier’s checks in their financial transactions.

Frequently asked questions

What are the primary uses of cashier’s checks?

Cashier’s checks are commonly used for making substantial payments and transactions where the payee requires assurance of available funds. Typical uses include down payments on homes, closing costs for mortgages, vehicle and boat purchases, and buying land.

How do cashier’s checks differ from traditional checks?

Cashier’s checks differ from traditional checks in that they are backed by the issuing bank’s own funds, making them more secure and less likely to bounce due to insufficient funds. Traditional checks are drawn from the payer’s personal account.

Are cashier’s checks widely accepted, and can they be used for everyday expenses?

Cashier’s checks are generally widely accepted for significant transactions. However, they are not typically used for everyday expenses like groceries or small purchases due to their extra security measures.

What security features do cashier’s checks have to prevent counterfeiting?

Cashier’s checks are designed with various security features, including watermarks and required bank signatures, to make them difficult to counterfeit. These features provide confidence to payees that they are genuine.

What should I do if I suspect a cashier’s check is fraudulent?

If you suspect a cashier’s check is fraudulent, contact the issuing bank or financial institution immediately. They can verify the check’s authenticity and guide you on the necessary steps to take.

Is it possible to obtain a cashier’s check without having a bank account?

While having a bank account is generally required to obtain a cashier’s check, some institutions may offer options for non-account holders, although additional fees may apply. Cashier’s checks can often be cashed without a bank account, subject to fees.

Key takeaways

  • Cashier’s checks provide enhanced security and are typically used for substantial transactions.
  • They are a reliable alternative to traditional checks and are widely accepted.
  • Be cautious of scams involving cashier’s checks and ensure proper verification of funds.
  • Costs, availability, and expiration of cashier’s checks may vary by financial institution.
View article sources
  1. Cashier’s Checks –
  2. How To Cash a Cashier’s Check – SuperMoney
  3. What Is a Certified Check, and How Do You Get One? – SuperMoney
  4. Fraudulent Cashiers Checks –