You’ve finally decided to make that big purchase. It’s an exciting milestone to finally have money for your first down payment for a house or car. Now you’re on your way to get a cashier’s check for the seller.
However, something went awry and now you want to cancel it. But can payment be stopped on a cashier’s check?
Well, technically no. A cashier’s check is much like giving someone cash. The only way to really get your money back is if the person you gave it to agrees to give it to you.
However, there is a way to cancel a cashier’s check. Before diving into that, let’s explore what a cashier’s check is and why would need one in the first place.
What is a Cashier’s Check?
A cashier’s check is a check guaranteed by a bank.The funds are drawn from the bank and signed by the bank teller or cashier. Like mentioned before, it works much like cash and takes the place of things like money orders, personal checks or credit cards.
The reason some sellers ask for a cashier’s check is to remove the risk of insufficient funds. For example, if someone accepts a personal check, that person runs the risk of not being guaranteed that the money will be in your bank account when he or she goes to deposit it. Instead of the funds being drawn from someone’s personal bank account, the funds for a cashier’s check is actually coming from the bank itself.
In other words, the bank guarantees that the person cashing the check will get their money. When getting a cashier’s check, the bank requires that you (the account owner) to in person to get it. You’ll need to make sure you have the money in your bank account and provide proper identification. Then the amount you got the check for will be frozen until that amount is taken out.
How Can Payment Be Stopped on a Cashier’s Check?
According to the US Office of the Comptroller of the Currency, you can’t after someone has cashed it. You can stop the check only if it’s lost or found to be fraudulent.
Now, if you have the check and you want to cancel it, then you can simply endorse it and the funds will go back into your account. Keep in mind that you won’t get the money back right away. It may take anywhere from 90-180 days for this to happen, depending on what your bank’s policy is.
If you don’t have the check, you may be able to stop payment if the check hasn’t been cashed yet. Check with your bank what their policies are as different banks won’t allow this. Again, you’ll have to wait at least 90 days before you have access to your money again.
Even if you try any of the above methods and get your money back, you’ve lost money getting the cashier’s check in the first place. As well, you can’t necessarily access your money until some time later.Remember, the bank has to honor a cashier’s check much like it would honor cash. So before you go ahead and use this method to pay for anything, make sure that you are 100% sure you want to use a cashier’s check.