Check cashier or check is a check guaranteed by the bank, taken from the bank's own funds and signed by the cashier. Checks are treated as a guarantee fund because the bank, not the buyer, is responsible for paying the amount. They are usually required for real estate transactions and brokers.
Check that the cashier deposited into a bank account is usually cleared the next day. Customers may request "next day availability" when depositing a cashier's check directly.
However, cashier checks are often faked in fraudulent schemes. The checkee can deposit a check on his account, withdraw funds under the availability of the next day, and assume the check is good. Checks can take weeks to clean the bank. So the bank can find that a check is a fraud a few weeks after the customer withdraws the funds, and the customer is then legally liable for the cash already withdrawn.
A customer asks the bank to check the cashier, and the bank immediately debits the amount from the customer's account, and takes responsibility for covering the checkout check. That's different from a personal check, where the bank does not debit the amount from the customer's account until the check is deposited or cashed by the recipient.
Cashier checks are not the same as a teller check, also known as a banker draft, which is a check given to a bank customer or obtained from a bank for remittance purposes and withdrawn by a bank, and withdrawn at another bank or paid through or at a bank. The checkout check is also different from the approved check, which is a personal check written by the customer and drawn on the customer's account, where the bank declares that the signature is genuine and that the customer has sufficient funds in the account to cover the check. Also, it should not be equated with a counter-check, which is an un-personalized check provided by the bank for the convenience of the customer in making withdrawals or payments but is not guaranteed and functionally equivalent to a personal check.
Video Cashier's check
Characteristics
The checkout checker displays the name of the bank issuing it in a prominent location, usually the upper left corner or the top center of the check. In addition, they are generally manufactured with enhanced security features, including watermarks, security threads, color change inks, and special bond paper. This is designed to reduce the vulnerability to counterfeit goods. To be recognized as a checkout checker, the words for that effect should be put in a prominent place on the front of the item.
The name of the payee, the written and numerical amount to be tendered, the sender's information, and other tracking information (such as the publishing branch), are printed on the front of the check. Checks are generally signed by one or two employees or bank officers; however, some banks issue check cashiers featuring facsimile signatures from chief executive officers or other senior officials.
Some banks contract the maintenance of their checkout account and check their expenses. One of the leading contractors is the Integrated Payment System, which issues checks and coordinates the redemption of goods for many banks, in addition to issuing money orders and other payment instruments. Theoretically, the checks issued by financial institutions but withdrawn at other institutions, as is often the case with credit unions, are check tellers .
Due to an increase in fraudulent activity, starting in 2006 many banks insisted on waiting for checks to clean up the agency before making funds available for withdrawal. Thus, a personal check will have the same utility in such transactions.
Maps Cashier's check
Legal definition
In the United States, under Article 3 of the Uniform Commercial Code, the cashier's check is effective as a record of the issuing bank. Also, under the CC Regulation (Reg CC) of the Federal Reserve, the cashier check is recognized as a "guaranteed fund" and the amount under $ 5,000 is not subject to a deposit hold, except in the case of a new account. The length of handles varies (2 days to 2 weeks) depending on the bank. It is unclear how long the time passes before the bank can be responsible for receiving a bad check.
In Canada, the bank draft does not have a different legal weight than standard checks, but is provided as a service to clients as a guaranteed payment instrument. Drafts (or postal money orders depending on the issuing institution) typically have better security features than standard checks, and are thus often preferred when the recipient is concerned about receiving fraudulent payment instruments. However, bank drafts may also be subject to counterfeiting, and as such may be withheld or verified by depositing agencies in accordance with their holdover policy, before granting access to the funds.
The term money order is used uniformly in Canada, with some agencies offering money orders and bank drafts depending on the amount, with others offering only one or the other for any amount. In general, both bank draft and money order are treated equally in terms of guarantee of funds and holding policy.
Alternative and risk
In many countries, money orders are a popular alternative to cashier checks and are considered more secure than personal bank checks. However, in the United States, they are generally not recognized as "guaranteed funds" under the CC Reg and limited to the maximum amount specified ($ 1,000 or less under US law for domestic money order orders).
Due to US regulatory requirements related to the Patriot Act and the Bank Secrecy Act because of recent concerns over money laundering, most insurance companies and brokers will no longer accept money orders as payments for insurance premiums or as deposits to brokerage accounts.
Fake money orders and cashier checks have been used in certain scams to steal from people who sell their goods online on sites like eBay and Craigslist.
The fraudulent check fraud check is a scheme in which the victim is sent a check cashier or an order money for payment on goods for sale on the Internet. When the money order is taken to the bank, the money may not be detected as counterfeit for 10 or more business days, but the bank will deposit the money into the account and declare that the money has been "verified" or "clear" within 24 hours. This gives the victim a false sense of security that the money order is real, so they continue the transaction. When the bank finally finds that the money order is fake and reverses the account credits a few days later, the customer usually already sends the item. In many cases, the "check" or "money order" is more than the amount owed, and the victim is required to refund the cash difference.
See also
- Certified checks
- Draft request
- Money order
- Check Guests
References
Source of the article : Wikipedia
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