A cashier's check has many pseudonyms including bank check, bank draft, treasurer's check, teller's check, or official check. Whatever its name, it is definitely more acceptable as a guarantee of payment than a personal check. A cashier's check guarantees payment since it is drawn directly on the bank's account.

In order to obtain a cashiers check, bank regulations require the money to be handed to them in the form of cash. Banks do not accept personal checks as appropriate funds, due to the natural flow of outstanding checks clearing a personal account.

1. Banks draft cashiers check requests only after the requested funds have been placed in the bank's account.

2. You can go to any bank, which offers cashiers checks, if you have cash in hand for the amount needed.

3. If you go to your own bank and request a cashier's check, the bank will withdraw the cash from your account before issuing the check.

Action Steps
The best contacts and resources to help you get it done

Get a cashier's check when you need it

It is standard for certain businesses or transactions to be handled with cashier's checks. The deposit or down payment on a home, car, or apartment is commonly handled with a cashier's check so the recipient doesn't doubt the validity of the transaction.

I recommend: Getting a cashier's check is as easy as going to an FDIC-insured bank or going to a CUNA-affiliated credit union and requesting one. If you don't have an account, make sure you have the cash in hand, or you have the details needed to wire the funds from your bank to the one you are in. Be aware that sometimes there is a processing fee associated with generating a cashier's check.

Know the rules and liability surrounding cashiers checks

The cashiers check location can be anywhere in the world. Prominent security features of valid cashiers checks include watermarking, security threads, and color-shifting ink all integrated into special bond paper. It's important to know that there is no standard look to for authenticating a cashier's check. Each institution can craft its own look.

I recommend: Uniform Commercial Code 3-104 defines Negotiable Instrument and cashier's check. The obligation of the issuer of a note or a cashier's check is listed under Uniform Commercial Code 3-412.

Where to get cashiers check advice

As a business owner, you want to make sure your income is not at risk. Ask questions before making decisions on whether accepting cashiers checks makes the most prudent sense for your business.

I recommend: Contact the consumer rights office of your state's attorney general. Find that link through the National Association of Attorneys General, or contact a business attorney using the National Association of Consumer Advocates.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be wary of anyone you don't know asking you to deposit their cashier's check into your account and then having you transfer the money to them. This is a common fraudulent check scam that starts with an email message from out of the blue.