A cashier’s check is a check that is covered or guaranteed by the bank. It is also known as a cashier’s cheque, bank check, official check, demand draft, teller’s check, bank draft or treasurer’s check. When receiving cashier’s checks, the recipient should treat it as if it were cash because banks are likely clear them immediately.
Banks reserve the right however, to take money back from a cleared cashier’s check if it is later determined that the processing funds were fraudulent.
When you receive a cashier’s check, one of the features on it is the name of the issuing bank. This is usually placed in a prominent location like the upper left-hand corner or in the upper middle area of the check. They will also include watermarks, security thread and color-shifting ink as security features to prevent replication.
Such checks also include the payee’s name, the amount of the check, the tracking information and the remitter’s information printed on the check. Most cashier’s checks will have the signatures of two bank employees or other officers but there are some banks that will use a facsimile signature of the bank’s CEO or chief executive officer.
Many banks will use contractors for their cashier’s check and other check issuing. One of the biggest contractors is Integrated Payment Systems. Integrated Payment Systems will issue checks, cashier’s checks, money orders and other items.
Since 2006, many banks will wait for a cashier’s check to clear much like personal checks. This was a reaction to an increase in fraudulent activities.