What Can You Write on a Cashier’s Check?
Learn the strict rules for writing on a cashier's check to protect its guaranteed value and prevent transaction issues.
A cashier’s check is a secure payment instrument issued and guaranteed by a financial institution, such as a bank or credit union. Unlike a personal check, which draws funds directly from an individual’s account, a cashier’s check is drawn against the bank’s own funds. This distinction means the bank assumes responsibility for the payment, providing a higher level of assurance to the recipient. Questions often arise regarding what information can be added to or written on a cashier’s check without compromising its validity.
Understanding Cashier’s Checks
A cashier’s check functions as a reliable form of payment because the funds are secured by the issuing bank itself. When a customer requests a cashier’s check, the full amount is withdrawn from their account and transferred to the bank’s account before the check is issued. This process ensures the funds are readily available and eliminates the risk of the check “bouncing” due to insufficient funds.
These checks are commonly used for transactions requiring guaranteed funds, such as down payments on real estate, large purchases like vehicles, or settling legal and business deals. They offer enhanced security compared to personal checks, as they are backed by the bank. Cashier’s checks involve a small fee, ranging from about $10 to $15, charged by the issuing bank.
Appropriate Additions
Certain areas on a cashier’s check are designed to accommodate additional information, which can be added by the payer or payee without invalidating the check. The memo line is a designated area, usually in the lower left corner, where notes can be added for record-keeping purposes. This can include details like an account number, invoice number, or a brief description of the payment’s purpose, such as “July Rent” or “Car Down Payment.” Information on the memo line is for informational use and does not affect the check’s negotiability.
The endorsement area on the back of the check is another place for legitimate additions, specifically by the payee. This is where the payee signs the check to authorize its deposit or cashing. For added security, a payee can write “For Deposit Only” above their signature, which restricts the check from being cashed and ensures it can only be deposited into their account. Some banks also provide a checkbox or space for “For Mobile Deposit Only” when depositing checks via a mobile device.
Prohibited Alterations
A cashier’s check is a bank-guaranteed instrument, and any unauthorized alterations can compromise its validity. Key information pre-printed by the bank should never be changed. This includes the payee’s name, the numerical and written amount of the check, and the issue date. Altering these fields can lead to the check being rejected by the bank or flagged as fraudulent.
No part of the bank’s pre-printed information, such as routing numbers, account numbers, or authorized signatures, should be altered. Any attempts to erase, white-out, or physically alter these details will void the check immediately. Banks are vigilant in detecting signs of tampering to prevent fraud.
Consequences of Unauthorized Writing
Making unauthorized alterations or writing in prohibited areas on a cashier’s check carries consequences. The issuing bank will refuse to honor the altered check. This means the payment will not be processed, leading to delays in the transaction.
If a check is deemed invalid due to unauthorized writing, obtaining a new one can be a lengthy process. The original check may need to be reissued, requiring the purchaser to file a “declaration of loss” with the bank. Banks may also require the purchase of an indemnity bond, an insurance policy protecting the bank if the original check is later presented and honored. This bond’s cost can be a percentage of the check’s value, ranging from 1% to 5%, and is non-refundable. There might be a waiting period, up to 90 days, before a replacement check is issued.
Beyond delays and reissuance challenges, altering a cashier’s check can expose individuals to risks of financial loss or accusations of fraud. An altered check could be perceived as an attempt to defraud, potentially leading to investigations by financial institutions or law enforcement. If a recipient accepts an altered check, they could face the loss of goods or services provided, as the payment will ultimately be reversed.