When you want to receive or make a secured payment then a Certified check is the best option for you, especially for big amounts. It is definitely the best when you are on the receiving end.
Let us give you all information you need to know.
What Is A Certified Check?
A certified check meaning is that the check with the guarantee of the bank issuing the check that there is enough money in the bank account holder’s account for the check to pass. It is also a sort of verification that the signature on the check is genuine.
Define Certified Check
A Certified Check definition is that it is a check written by the account holder and guarantee is taken by the bank that the amount mention in the check is available in the account of the payer and the check will be passed.
It also means that the signature on the check is verified and genuine.
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What Does A Certified Check Look Alike?
A certified bank check is a normal check from your checkbook that you give the bank for certification. On the check, there will be an additional signature of the bank’s representative next to your signature and a stamp of “certified” will appear on the check
Use of Certified Check
Usually, a bank certified check is used for the transaction of larger amounts especially when the payer is unknown or cannot be trusted. A normal check has some risks especially for the payee when they are unsure that the payment will be cleared are not. It gives security to both parties about the payment.
Certified checks are also best when you need to transfer the fund faster after depositing a check, unlike a normal check where you have to wait for the clearance of the check.
How To Get A Certified Check?
You can purchase it from your bank or credit union. You have to go personally to get the check issued. Below I have mentioned the steps. Before going to the bank for issuing a certification to your check make sure that they offer the facility.
- Step 1 – Write a check normally as your issue, write it carefully as they will be charging for certification of the check and any mistake will make this check invalid.
- Step 2 – You have to physically go to your bank branch with the check.
- Step 3 – You need to show your identity proof documents (If visiting other banks then you have to show the proof of your account balance)
- Step 4 – Wait until the bank verifies your signature and the amount in your account.
- Step 5 – Pay the fee for certification, once the verification is done bank executive may ask for the fee.
- Step 6 – Once you make the payment as directed by the bank they will give a certified stamp on your check
Note: Once you receive a certified stamp on the check the amount mentioned on the check will be frozen. You may see the amount that will be reflected in your account will be after the deduction of this amount.
For example, you want Bank of America Certified Check to have an account there then you have to go there with your check and get it verified by the steps explained above.
Certified Check Cost
The cost depends on the type of account and the transaction amount, it may vary between $5 to $15.
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Alternatives to Certified Check
There are two alternatives.
- Cashier’s Check
Both are similar to each other, they have the security of the amount mentioned in the check and are considered as official checks.
- Money Orders
Money orders are also similar to certified checks and you can get a money order from the post office or money transfer companies plus you need not have an account you need cash for a money order.
Where to Get A Certified Check?
You will get it from the bank or credit union. You can also get check certified from the US post office but it is easier to get it from your bank where you have your account. For example, you can get USAA certified check or Chase certified check also. You Can get to know more on AskCorran.
Work of Bank after issuing the certified check
Once issued a certification to your check the bank issuing the check takes care that the amount mentioned on the check is kept aside so that when the check comes for a clearance the specific amount is available in the payee’s account.
Certified Checks VS other forms of Check
There are many different types of checks, let’s see the difference.
Cashier’s Check VS Certified Check
Both checks are somewhat similar to each other.
The difference is that in a Certified check the amount mentioned on the check is frozen in your account until the check is cleared whereas in Cashier’s check the amount is immediately deducted from your account and paid to the recipient.
Certified Check Vs Money Order
Money Order and Certified Checks are also similar the difference is that in a Certified check you need an account and the amount that is to be mentioned on the check whereas in money orders do not need your account in the bank.
The second difference is that the money order is much cheaper.
Certified Check Vs Personal Check
A personal check can be issued and has no guarantee of the sufficient amount in the payer account whereas in certified check bank takes the guarantee of the amount.
Second checks certified are chargeable and personal checks are not.
Third For a check certified you have to go to the bank physically and a personal check can be issued by you.
Drawbacks of a Certified Check
Although they come with the guarantee it has some minus points.
- You have to pay some extra amount for the certification.
- You have to physically go to your bank that is a bit time-consuming.
- The amount in your account is frozen till the payee does not deposit the check and it is cleared
- The check once certified cannot be canceled.
Security from Risks and Certified Checks
Like any other checks even Certified checks also have a risk from scammers. Frauds can write a false check and try to that the merchandise is delivered as soon as possible before they are caught.
Most banks make the first $5000 of the check amount immediately. The rest of the funds are not cleared until the bank does not verify it is real or nor and whether you have made money available to the payee upfront.
If you feel that the check is fraudulent then contact the bank that has certified the check and also verify the legitimate.
Can A Certified Check Bounce?
A certified check is a check written by an account holder and guaranteed by the bank. This means that you write a check almost as normal, but the bank certifies it and freezes the check amount in your account. That way, the check won’t bounce whenever it’s deposited.
FAQ
Is Certified Check Safe?
Yes, they are safe as they have security from the bank and also are verified.
Can A Certified Check Be Canceled?
If the certified check is lost or stolen then the bank can cancel the check after 90 days. In this case, the bank makes the stop payment and cancel the transaction. A complete refund is given to the customer.
What Is A Certified Check And How Do I Get One?
A certified check is a check that is certified and verified by your bank that the amount mentioned on the check is sufficient in your account and the signature on the check is genuine.
You can get a certified check from your bank or credit union.
What Is The Difference Between A Certified Check And A Cashier’s Check?
The Cashiers Check and Certified cheque somewhat similar.
The difference is that in Certified checks the amount mentioned on the check is frozen in your account until the check is cleared by the payee whereas in Cashier’s check the amount is immediately deducted from your account and paid to the recipient.
How Do I Get A Certified Check From My Bank?
- Step 1 – Write a check normally as your issue, write it carefully as they will be charging for certification of the check and any mistake will make this check invalid. You have to pay twice unlike a void check that is not charged
- Step 2 – You have to physically go to your bank branch with the check.
- Step 3 – you need to show your identity proof documents
- Step 4 Wait until the bank verifies your signature and the amount in your account.
- Step 5 – Pay the fee for certification, once the verification is done bank executive may ask for the fee.
- Step 6 – Once you make the payment as directed by the bank they will give a certified stamp on your check
Does A Certified Check Clear Immediately?
It depends on the check amount, is the amount is bigger than it may take 2 days for the clearance of the complete amount. Some banks offer clearance of half amount in a day and rest half the other day.
How Safe Is A Certified Check?
Cashier’s checks are typically deemed a safe way to make a large payment on a purchase. The difference from a regular check is that the bank guarantees its payment, not the purchaser.
What Is A Certified Check And How Does It Work?
A certified check is a personal check of a bank or credit union account holder, with bank marks (stamp or signature) indicating the check is legitimate, the customer’s check signature is authentic, and enough guaranteed funds from the payer’s bank account are set aside to cover the amount of the check transaction.
Is There A Difference Between A Certified Check And A Cashier’s Check?
Cashier’s checks and certified checks are frequently used for big purchases. A cashier’s check uses funds from a financial institution’s account. A certified check uses funds from a customer’s account.
Conclusion
Certified checks give you a guarantee and verification about the check and the amount though you have to go to your bank and get the certification done. But it gives both the parties peace of mind and relaxation about the amount.
Though it may cost you and it also freezes the amount and the security is given to you that the transaction will not fail. Certified check scams are very rare as they are verified and assured.
As the use of electronic transactions is increasing day by day the use of checks is becoming very uncommon. But when you need security and security for a payment certified check is the best option.
