Each year, consumers and businesses report over half a million cases of check fraud. Personal checks may be stolen from mailboxes, washed, and cashed by malicious individuals. Even handing a check to someone directly can result in fraud if the recipient is untrustworthy.

The potential trouble? You may find large sums missing from your checking account.

Using cashier’s checks, especially for large purchases, can significantly decrease your risk of experiencing check fraud. Such checks are guaranteed by your bank, verified for authenticity, and signed by a bank official. They add an additional layer of security that provides peace of mind when mailing checks or dealing with new merchants.

There are other reasons consumers might wish to use a cashier’s check, too. In this guide, we’ll explain everything you need to know about using cashier’s checks to safely complete transactions. Continue reading to learn more.

A cashier’s check is a way to guarantee payment to your recipient. When you request a cashier’s check, funds from your personal checking account will be transferred to the issuing bank. When the recipient cashes the check, the funds will be drawn from the bank’s account instead of yours. The banker, not you, will sign and certify the check.

In essence, your part of the transaction is complete by the time you receive the cashier’s check. Cashier’s checks tend to clear faster than personal checks, too.

When paying with a cashier’s check, there is typically less risk for both you and your recipient. Because they are guaranteed by a bank, some cash-only merchants may accept a cashier’s check in lieu of cash.

It’s also a good idea to use a cashier’s check during a transaction with a stranger or unknown merchant. It can help build trust and reduce the chances of experiencing check fraud.

Likewise, you can use cashier’s checks to complete payments even if they exceed your credit card limit. For that reason, it’s common to use cashier’s checks to pay for large purchases, such as:

• A rent deposit
• A new car
• The downpayment on a home

The next question most consumers have is, “Where can I get a cashier’s check?”

All you need to do to get a cashier’s check is visit a bank or credit union. In many cases, you can even order a cashier’s check online. We recommend using a bank where you have an account to make the transaction even simpler.

You’ll need a government photo ID and enough funds to cover the full value of the check. You can provide the funds in cash, or they can be withdrawn directly from your account. Those funds will instantly be transferred to the bank’s account.

You’ll then receive your cashier’s check. If you order your check online, you may receive your check by mail instead.

Requesting a cashier’s check is a common bank transaction and can often be completed in minutes. If you order online, it may take a few business days to receive your check in the mail.

There may or may not be a charge for a cashier’s check.

At some banks, you may be asked to pay a small fee, often around $10. However, some banks will waive this fee for certain account holders. For example, long-time account holders or those with premium accounts or high balances may not have to pay.

Furthermore, many online banks offer free cashier’s checks to account holders.

A cashier’s check, money order, and certified check are three ways to ensure a more secure transaction. However, a cashier’s check is not the same as a money order or a certified check.

Money orders do not always come directly from banks. You can purchase money orders at many retail stores and even some post offices. Most money orders cannot exceed $1000, while cashier’s checks are often used for higher ticket purchases.

Money order funds are not backed by a bank and may take somewhat longer to fully clear. They are considered to be less secure but more convenient than cashier’s checks.

Certified checks are similar to cashier’s checks, but the funds come directly from your personal bank account. The account holder, not the bank representative, will sign the certified check. The bank representative will certify your signature with a stamp, signature, or watermark. If the check bounces, the responsibility falls on the account holder, not the bank or credit union.

While certified checks are more secure than personal checks, they are less secure than certified checks. For that reason, some banks may only issue cashier’s checks.

Cashier’s checks can expire, but not all do. Check to see if your cashier’s check includes an expiration date. It will normally say “void after X,” with X being a date between 60 and 180 days in the future. Even so, a bank may be willing to reissue an expired check for a fee.

In many cases, however, a cashier’s check remains valid as long as the bank is operational. Be aware that cashier’s checks may be subject to state laws about abandoned property. It’s best to cash a cashier’s check promptly to ensure the funds aren’t turned over to the state.

Are you interested in learning more about banking and finances? Head to our banking guides dedicated to financial wellness and learning.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.