What is a cashiers check?
A cashiers check is an alternative payment method thats often favored over cash, online payments or personal checks in riskier transactions. This method is particularly useful when it comes to making large payments because it offers a degree of protection on both sides and can improve a buyers credibility. A cashiers check works similarly to a personal check, but the funds come directly from the bank rather than the individuals account. This provides a more secure method of payment for both the buyer and seller as the buyer is guaranteed payment while the seller doesnt put their own money at risk in the event that the buyer defaults. These types of checks are often deployed in cases of large purchases such as houses or cars, particularly given that debit cards will often not be accepted, and the amount concerned cannot reasonably be covered in cash. A cashiers check will be signed by a bank cashier  or sometimes two  and will also feature the banks watermark to ensure its authenticity. Theyre purchased directly from the bank, which means youll pay the bank first and the bank will then pay your seller. Cashiers check vs. certified check  A certified check may sound like an official document, but it is essentially another name for a personal check. With a certified check, the money concerned is drawn directly from the check-writers account. With a cashiers check, the money comes from the banks own funds  although the buyer will have paid the bank the appropriate amount ahead of time. Cashiers checks may also be referred to as official checks, but these terms mean the same thing. How to get a cashiers check  A cashiers check can be obtained directly from your bank simply by visiting a branch. You can sometimes request these checks online but its always worth checking with the customer service team whether the option is available. This may depend on the type of account you hold and the amount you wish the check to be made out for. Youll need to supply the details of the recipient and the amount you wish to pay out as well as your own payment methods and your ID. Youll typically have to pay a commission amount as well as the cost of the actual check so its worth enquiring about rates beforehand. Once youve purchased your check, you should get a receipt that you can use as proof of payment. You can also use this to track the check, so that you know when the payment has been made, and to keep your records up to date. Many financial institutions will charge a service fee for a cashiers check, but actual rates can vary significantly between banks, so its worth looking around to see what the best deal is. Some will offer a free service, but this is often limited to those holding particular types of accounts. Others will offer a certain number of free checks within a set period before you have to pay a fee for any extras. Fees are usually fairly low but its important to enquire ahead of time so you can factor the cost into any calculations. Cashiers check limits  Typically, theres no limit on the amount that can be paid out using a cashiers check  although this does sometimes vary between different institutions so its always worth enquiring with your bank. If youre paying a particularly high amount, the bank may require that you order the check in person or you may have to make the payment across separate checks or even different days. We can help  GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.