Can You Return a Cashier’s Check?

A cashier’s check is a secure form of payment, issued by a bank and drawn on its own funds. The issuing bank guarantees the funds, making it a reliable choice for significant transactions where assured payment is necessary. These checks are commonly used for large purchases, such as a down payment on a home or buying a car.

Conditions for Returning a Cashier’s Check

Returning or canceling a cashier’s check is possible, but it requires specific conditions. The original check must be in the purchaser’s physical possession. Only the individual who originally purchased the cashier’s check can initiate a request for its return or cancellation.

A cashier’s check cannot be returned or canceled if the payee has already cashed or deposited it. Once the funds have been disbursed to the payee, the transaction is considered complete, and the bank is no longer able to stop payment on the check. Bank policies and procedures for cancellation vary, so contacting the issuing bank directly is necessary.

Banks may charge a fee for processing the cancellation of a cashier’s check, typically ranging from $5 to $15. Some financial institutions might also impose a waiting period before they will process a refund or replacement, even if the check is in hand. This waiting period helps ensure the check has not been presented for payment elsewhere.

Process for Returning a Cashier’s Check

If you possess the original cashier’s check and wish to return it, contact the bank that issued the check. Provide identification and the original purchase receipt. The receipt contains important details like the check number, which helps the bank locate the transaction.

The bank will require you to complete specific forms for cancellation or return. You may need to write “Not used for the purpose intended” on the check and endorse it before surrendering it to the bank. Once the bank verifies the check has not been cashed and processes the cancellation, the funds are returned to your account. It is advisable to request written confirmation from the bank once the cancellation is processed, serving as proof that the check has been voided.

Addressing Lost or Stolen Cashier’s Checks

Immediately report a lost or stolen cashier’s check to the issuing bank. Acting quickly allows the bank to flag the check and monitor for any attempts to cash it.

The bank will require the purchaser to sign a “declaration of loss” or “affidavit of loss.” This legal document affirms that the check is lost, stolen, or destroyed and cannot be reasonably recovered. The declaration also includes an agreement to indemnify the bank against any losses should the original check eventually be presented and cashed.

In many cases, banks require the purchase of an indemnity bond, especially for checks exceeding $1,000. An indemnity bond acts as a type of insurance policy, protecting the bank if the original check is later presented and paid by someone else. The cost of an indemnity bond can vary but may be a percentage of the check’s value, sometimes around 1% to 5%.

After filing the declaration of loss and, if required, obtaining an indemnity bond, a mandatory waiting period is imposed before a refund or replacement check is issued. This waiting period is often 90 days, allowing time for the lost check to surface. Some states may have shorter waiting periods, such as 30 days. After this period, if the check has not been presented, the bank will issue a new cashier’s check or refund the funds to the purchaser.