Certified Check vs Cashiers Check

Talking about certified checks vs cashier checks, both offer relatively safe and reliable payment options compared with payment by cash or personal checks. Each of these two options comes with a form of payment guarantee, allowing sellers to act in good faith by shipping products or performing services before payment in full has been received. Each option delivers its own set of advantages and disadvantages.

Certified Check
An officer of the bank has certified on the check that good funds were available in the amount of the check at the time the check was originated and that the signature on the check is genuine. The bank then sets aside the funds and will only use these funds to pay the certified check. If the check isn’t a forgery, you won’t have an issue depositing good funds into your account. In some financial transactions, especially larger ones, paying with cash can be impractical for buyers, and accepting payment by a regular personal check can be risky for sellers — especially if they have doubts about a buyer’s ability to pay. A certified check can reduce risks for everyone in such a transaction. The whole purpose of a certified check is to ensure the person who’s getting paid that there’s money behind the check. With a cashier’s check, the bank receives money from the purchaser, then issues the check and guarantees its payment at face value. Funds are drawn against the bank, not against a personal account, as is the case with a certified check.

Cashiers Check
A cashier’s check is an obligation of the issuing bank. A cashier’s check is a check guaranteed by a bank, drawn from its own funds and signed by a cashier or teller. It’s a safe way to make a large payment on a purchase. The most important difference from a regular check is that the bank guarantees its payment, not the purchaser. A cashier’s check is used in place of cash, personal checks, credit cards or money orders. You can usually purchase cashier’s checks through a bank or credit union. Some institutions let you order cashier’s checks online. This usually takes longer, so plan ahead, or stick with visiting a branch if you’re in a hurry. Banks may hesitate to issue a cashier’s check if you’re not a client. You may need to open a checking account. If that’s not practical, a money order or certified check might fill the bill.

Certified CheckCashiers Check
- Certified check are checks signed by the customer- Cashier check are checks signed and guaranteed by the bank
- Certified check essentially certifies that the funds are in the account and that the payee will be able to draw the funds when cashing the check- Cashier's check places the burden of payment on the bank itself
- Cashier check, the bank receives money from the purchaser, then issues the check and guarantees its payment at face value- Funds are drawn against the bank, not against a personal account, in the case with a certified check

Conclusion
Overall, because check payments are usually used for large amounts of money transactions, so that cashier checks are one of the safest, most practical and preferred payments on large purchases. If you have a big purchase to make and can’t use a debit or credit card, a cashier’s check can be a great way to pay a large amount of money. When you purchase one of these checks from a bank or credit union, all parties can be confident that the transaction is secure and the risk of theft or fraud is minimal.

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