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  1. #1

    Depositing Cashier's Check

    Am considering accepting cashier checks but worried about fakes. Doesn't banks verify the serial number or whatever number on it before they make funds available?

  2. #2
    I read on bankrate that they sometimes take days to realize counterfeit cashier check.

  3. #3
    Banks are for-profit companies in competition with one another. Therefore, they do not share information with one another openly, and they place holds and delays on one another just as they place holds and delays on consumer funds and information in efforts to maximize their profits.

    Contrary to popular belief, it often takes banks anywhere from three to fourteen days to negotiate our deposited checks with the other institutions from which they were written. This is as true for cashier's checks as it is for personal checks.

  4. #4
    money made available to us within the first few days from those checks is really being "loaned" to us until the originating bank pays for it. It is for this reason that your bank will hold or release the availability of funds based on your financial history with the bank. They are taking a risk that if the check bounces, they aren't ever going to get that money back.

    Until a check is fully negotiated by the originating bank, there is a chance the check will prove invalid. Because there are laws on banks not to hold cashier's checks, they see these as particularly risky instruments, especially in larger amounts.

  5. #5
    As for verifying a cashier's check, your bank will only make a special effort to do this or order to protect themselves from losses, not to protect the consumer. So, if you've got a high average balance and no history of overdrafts, it is likely that cashier's checks for less than your average balance will be processed by your bank in the same way it processes personal checks, without making any special effort to verify them as legitimate. The funds will be made available to you the same or next day, but may be removed from your account if the cashier's check proves fake a week later.

    I would say that your confidence in the legitimacy of your customer's payments should never exceed your confidence in the character of your customers, regardless of the financial instrument they use to pay.

    I hope this helps.


 

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