What to Do When You Receive a Cashier’s Check

A cashier’s check represents a secure form of payment. It is guaranteed by a bank, meaning the funds are drawn directly from the bank’s own accounts rather than an individual’s personal account. This makes it a reliable payment method, often preferred for large transactions, such as real estate purchases or vehicle down payments. The bank assumes responsibility for covering the payment, virtually eliminating the risk of the check bouncing due to insufficient funds.

Depositing or Cashing Your Check

Receiving a cashier’s check provides options for accessing funds, primarily by depositing it into your bank account or cashing it. When depositing, you can visit your bank in person, use an ATM, or utilize mobile deposit services through your bank’s app. For mobile deposits, endorse the back of the check by signing your name and writing “for mobile deposit only.” Submitting clear photos of both the front and back of the check through the app is necessary.

Once deposited, funds from a cashier’s check are generally available faster than personal checks, often by the next business day. Banks may place holds on larger amounts, with excess funds potentially available later. If the deposit is made via ATM, funds might be available on the second business day. Funds may be available before the check has fully cleared; if fraudulent, the bank can reverse the funds from your account.

Cashing a cashier’s check is another option. You can cash the check at the issuing bank, even if you do not have an account there, but you will need to present valid photo identification. Some banks may charge a fee for cashing a check if you are not an account holder. Alternatively, you can cash it at your own bank, which may also require identification and could involve fees or holds. Acceptable forms of identification include a driver’s license or passport.

Verifying the Check’s Authenticity

Cashier’s checks can be targets for fraud, making verification important before depositing or spending funds. Scammers often create convincing counterfeit checks, and it can take weeks for a fraudulent check to be detected. If you spend funds from a fraudulent check, you will be liable for the unpaid amount and any associated fees.

The most reliable way to verify a cashier’s check is by contacting the issuing bank directly. Find the bank’s official contact information from a trusted source, such as their official website or a public directory, rather than using any phone number printed on the check. When contacting the bank, provide details like the check number, amount, payee name, payor name, and issue date to confirm its authenticity.

Examining the physical characteristics of the check can also reveal red flags. Genuine cashier’s checks often have security features such as watermarks, security threads, microprinting, and color-shifting ink. Look for signs of tampering, misspellings, unusual fonts, or poor print quality. A blank payee line or a suspicious phone number on the check are also indicators of potential fraud. Be cautious if the check amount is higher than expected, or if you are pressured to deposit it quickly and wire back funds, as these are common scam tactics.

Addressing Common Situations

Dealing with a lost or stolen cashier’s check requires immediate action. If you lose a cashier’s check, contact the issuing bank right away to report the loss. The bank will likely require you to complete a “declaration of loss” statement, a legal claim acknowledging that you no longer possess the check. Replacing it often involves a waiting period, typically around 90 days, to ensure the original check is not cashed.

To expedite the replacement process and protect the bank from potential loss, you may be required to obtain an indemnity bond. This bond acts as an insurance policy, making you liable for any losses if the lost check is presented for payment after a replacement has been issued. The cost of an indemnity bond can vary, often around 1% to 5% of the check’s value, with potential minimum fees.

If a cashier’s check is damaged, its processability depends on the extent of the damage. Minor damage might not prevent it from being deposited or cashed, but significant damage could render it unusable, necessitating a replacement. If a check is no longer needed or unused, you can return it to the issuing bank for a refund. While some banks may have specific procedures or fees for cancellation, an unused check can often be returned to the bank for the funds to be credited back to your account.