Whether you are making a payment or receiving one, you will want to get it done safely and securely. There are various options available for you to choose from, you can try a personal check, but you are risking the check getting bounced, and you most certainly will not want to carry around a bundle of money. If you want a secure form of payment, you should try a Certified Check. It gives the recipients assurance that the check will not bounce, but they need to make sure to cash it out within a set timeframe.
What Is A Certified Check?
A certified check is a check written by the payor and guaranteed by the bank. You can just write the check normally and the bank will freeze the amount in your account to make sure that the check will not bounce when it is deposited. A bank teller will check whether the check writer has sufficient funds available and ensure that the signature is genuine before setting aside the amount. The biggest benefit of using a certified check is that it is a guaranteed fund.
When To Use A Certified Check?
Certified checks are a great option to use during large transactions and when the recipient wants extra assurance. When you are making large transactions the recipients may not be willing to accept cash as it is inconvenient and unsafe, and they will not accept personal checks as it poses the risk of getting bounced. A certified check can reduce the risk for everyone involved and can also give peace of mind to both parties. They can also be used instead of cash purchases by companies and when you need more funds as you will not have to wait for the check to clear.
How To Get A Certified Check?
You can get a certified check through the bank or credit union, you can get it from any bank but the best option would be to go to the bank where you have an account. However, before you go to the bank make sure to verify whether they offer certified checks and ask for the requirements needed to obtain this check. To get a certified check, you will need to provide the check amount and the name of the recipients. The bank will then verify your identity and check whether you have a sufficient amount available in your account to make the transaction. Most of these financial institutions charge a fee for the certified check.
How To Prevent Fraud?
Certified checks are mostly safe, but they are also prone to fraud. So, if you receive a certified check, you need to check its legitimacy and ensure that it is not counterfeit. Inspect the check carefully and look out for typos and grammatical errors, but you should also remember that most checks do not have immediate giveaways. If you receive a certified check, the best option is to call the bank and verify it to avoid any further complications, And when you call the bank, do not call the number printed on the check as it could be fake too. If the check was discovered to be fraudulent, you may be held responsible for the entire amount, so you should be careful.
When you get a certified check, you will have to pay a fee and taxes, in some banks and financial institutions, the charges will vary depending on the value. Since it is a guaranteed form of payment, once the check is passed it is as good as cash. And these are some of the reasons why people prefer certified checks instead of personal checks, especially for a larger amount of transactions.