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Encyclopedia > Cashiers checks

A cashier's check (also known as a bank check, official check, teller's check, bank draft or treasurer's check) is a check guaranteed by a bank. They are usually treated as cash since most banks clear them instantly. Example of a Canadian cheque. ...

Example of a voided cashier's check, this one issued by Integrated Payment Systems (as evidenced in the lower left corner of the check), on behalf of Community Bank.
Example of a voided cashier's check, this one issued by Integrated Payment Systems (as evidenced in the lower left corner of the check), on behalf of Community Bank.

Contents

Image File history File links CommunityBankCheck. ... Image File history File links CommunityBankCheck. ...

Characteristics

Cashier's checks feature the name of the issuing bank in a prominent location, usually the upper left-hand corner or upper center of the check. In addition, they are generally produced with enhanced security features, including watermarks, security thread, color-shifting ink, and special bond paper. These are designed to decrease the vulnerability to counterfeit items. In order to be recognized as a cashier's check, words to that effect must be included in a prominent place on the front of the item. Banker redirects here; see wiktionary:banker for more meanings. ... This Crown & CA (for Crown Agent) watermark was standard for postage stamps of the British colonies from the 1880s to the 1920s. ... A security thread is a security feature of many bank notes to protect against counterfeiting, consisting of a thin ribbon which is threaded through the notes paper. ...


The payee's name, the written and numeric dollar amounts, the remitter's information, and other tracking information (such as the branch of issue), are printed on the front of the check. The check is generally signed by one or two bank employees or officers; however, some banks issue cashier's checks featuring a facsimile signature of the bank's chief executive officer or other senior official. A bank officer is an employee of a bank endowed with the legal capacity to agree to and sign documents on behalf of the institution. ... This page is a candidate to be moved to Wiktionary. ... A Chief Executive Officer (CEO), or Chief Executive, is the highest-ranking corporate officer, administrator, corporate administrator, executive, or executive officer, in charge of total management of a corporation, company, organization or agency. ...


Some banks contract out the maintenance of their cashier's check accounts and check issuing. One leading contractor is Integrated Payment Systems, which issues cashier's checks and coordinates redemption of the items for many banks, in addition to issuing money orders and other payment instruments. In theory, teller's checks are checks issued by a financial institution but drawn on another institution, as is often the case with credit unions. In accountancy, an account is a label for recording a quantity of almost anything. ... A money order is a payment order for a pre-specified amount of money. ... A credit union is a not-for-profit co-operative financial institution that is owned and controlled by its members, through the election of a volunteer Board of Directors elected from the membership itself. ...


Due to an increase in fraudulent activities in 2006 many banks insist upon waiting for a cashier's check to clear the originating institution. Personal checks will thus have the same utility in such transactions. [1]


Legal definition

In the United States, under Article 3 of the Uniform Commercial Code, a cashier's check is effective as a note of the bank. Also, according to Regulation CC (Reg CC) of the Federal Reserve, cashier's checks are recognized as "guaranteed funds" and amounts under $5000 are not subject to deposit holds, except under certain circumstances. The Uniform Commercial Code (UCC) is one of the uniform acts that has been promulgated in attempts to harmonize the law of sales and other commercial transactions in 49 states (all except Louisiana) within the United States of America. ... The Expedited Funds Availability Act (EFA or EFAA) was enacted in 1987 by the United States Congress for the purpose of standardizing hold periods on deposits made to commercial banks and to regulate institutions use of deposit holds. ... Headquarters Washington, DC, USA Chairman Ben Bernanke Central Bank of United States Currency US dollar ISO 4217 Code USD Base borrowing rate 5. ...


Alternatives and risks

a counterfeit cashier's check

Money orders are a popular alternative to cashier's checks and are considered safer than personal bank checks. However, they are generally not recognized as "guaranteed funds" under Reg CC. Image File history File links Download high-resolution version (2554x1136, 1969 KB) Summary A scan of a counterfeit cashiers check that is made to appear to be issued by Wells Fargo Bank. ... Image File history File links Download high-resolution version (2554x1136, 1969 KB) Summary A scan of a counterfeit cashiers check that is made to appear to be issued by Wells Fargo Bank. ... A money order is a payment order for a pre-specified amount of money. ...


Because of regulatory requirements associated with the Patriot Act and the Bank Secrecy Act(concerns over Money Laundering), most insurance and brokerage firms will no longer accept Money Orders as payment for insurance premiums or as deposits into brokerage accounts.


Counterfeit Money Order's and Cashier's checks have been used in certain scams to steal from those who sell their goods online.[2]


See also

This page is a candidate for speedy deletion, because: it contains no useful content If you disagree with its speedy deletion, please explain why on its talk page or at Wikipedia:Speedy deletions. ... A money order is a payment order for a pre-specified amount of money. ... kunal A travelers cheque (also travellers cheque, travelers check, or travelers cheque) is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer (usually a bank) for that privilege. ...

Notes

  1. ^ New Scam Uses Counterfeit Checks. ConsumerAffairs.com. Retrieved on 2004 June 2.
  2. Understanding a bank draft. British Bankers Association. Retrieved on 2006 October 28.

 
 

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