What is a Certified Check?
Issued by banks, a certified check carries with it the advantage of guaranteed payment. Essentially, certified checks are not drawn on a standard checking account, but are issued directly by the bank. Anyone may visit a local bank and request the creation of a certified check that may be used as payment to a specific recipient. As one of the oldest checking services offered by banks around the world, the certified check is often employed as a means of forwarding a documented financial instrument from a payer to a payee. The process for creating a check of this type is very simple. A payer supplies the bank with the name of the payee and the desired amount of the payment. Many banks will also allow the inclusion of data, such as an invoice number or a field to record a reference or reason for the payment. The final details include the name of the payer and the date of issue for the check. The main advantage of issuing a certified check for payment is that the instrument comes with a ful
A certified check is a check that your banking institution guarantees with funds in your own bank account. To obtain a certified check to, for example, provide a down payment when buying a car or to pay your landlord’s required security deposit, you need to go in person to your bank and have the cashier prepare the check for you, with the payee’s name on the check and your signature. Your banking institution will then reserve that amount of money in your account as untouchable — thus guaranteeing the certified check will not bounce. It’s as good as cash but safer to mail or carry around, especially if the amount is large. Certified checks are used primarily in situations where a creditor doesn’t know or trust a borrower’s (or payee’s) creditworthiness. Since the check issuer cannot put a stop payment on a certified check, the check holder knows that he or she can get cash out, guaranteed. If you don’t have a bank account, most banks will allow you to get a cashier’s check in exchange
A certified or cashier’s check is issued by your bank/financial institution, Western Union or MoneyGram, and guarantees that you have the specified funds available. Certified/cashier’s checks are one of the methods we offer you to deposit funds into your AlertPay account. All funds must be in USD currency.
