Cashiers checks and certified checks

Online scams often involve sending you a check for more than the amount of the vehicle and then you wiring the scammer the difference between the actual price and the amount of the check.

****NEVER WIRE MONEY FOR A TRANSACTION****

When conducting a face to face transaction, cashiers or certified checks can be an ideal form of payment because there is no means to stop payment on a cashiers or certified check as with a personal check.

What’s the difference between a Certified and a Cashier’s Check?

Certified Checks: A certified check is a check that is “certified”. It has written acknowledgment by the Bank that the Customer’s signature on that check is genuine and that there are sufficient funds in the Customer’s account to honor the check.

Cashier’s Checks: A cashier’s check is a draft drawn by a Bank on itself, which the Bank agrees to honor when properly presented for payment. The Bank, not the customer, signs the check.

Which method is preferable?

There are fewer opportunities for forgery using a cashier’s check. Since there may be problems with either kind of check, if you have any misgivings at all about accepting payment via either, you should call the Bank that issued the check to verify its legitimacy.

Source: www.credittoday.net

Comments

[Ginger]

Very good tips and very good article.