Can I put a stop payment order on a cashier's check? (2024)

FAQs

Can I put a stop payment order on a cashier's check? ›

Generally, a customer cannot order a stop payment on a cashier's check, and the bank must honor a cashier's check when it is presented for payment. This is because a cashier's check is drawn directly on the bank that issues the check, not on your account.

Canceling a cashier's check is more complex than canceling a personal bank check. If you lose a cashier's check you must notify the bank, fill out a declaration of lost form, and wait; it can take 90 days (after you file) to recoup the money. The bank will levy a fee when you cancel a cashier's check.

The fee to cancel, or “stop payment,” on a check can be $30 or more at many large banks. However, some banks and credit unions charge less, and the cost can vary depending on how you make the request.

The bank can place a hold on the entire amount of the cashier's check if it has reasonable cause to believe the check is uncollectible from the paying bank.

Federal regulations require banks to make funds deposited in an account by cashier's, certified, or teller's checks available for withdrawal not later than the business day after the banking day on which the deposit takes place, the same as for cash deposits, but only if certain conditions are met.

However, the declaration of loss is not enforceable until 90 days after the check was issued. That 90-day window exists to give some time for the check to be found. If the check is still lost after 90 days, the original check is essentially voided and the bank will reissue the cashier's check.

If you lose a cashier's check, the bank will require that you obtain an indemnity bond for the amount of the lost check before it will issue you a new one. An indemnity bond is a type of insurance policy.

Downsides of Cashier's Checks

Risk of fraud is also high with cashier's checks, as counterfeit cashier's checks can be created by scammers. Last, cashier's checks are non-refundable. This means you may not be able to get a refund for the funds used to purchase them.

Generally, banks honor a stop payment request for a check drawn on your account. If you stop payment properly and the bank cashes the check, the bank may be liable for the cashed check. you fail to provide sufficient notice to implement the stop payment order.

Your bank will typically be on alert for the check for six months. 6 Bank policies differ, so be sure to confirm the specifics with your bank. After that, the stop-payment expires. If you want to continue the stop payment order after that, you'll likely have to pay a fee to renew it.

Why is there a 10 day hold on a cashier's check? ›

Banks place holds on checks to make sure the payer has the bank funds necessary for the check to clear and to prevent fraud.

When a customer uses currency of more than $10,000 to purchase a monetary instrument, the financial institution issuing the cashier's check, bank draft, traveler's check or money order is required to report the transaction by filing the FinCEN Currency Transaction Report (CTR).

As a rule, the only time a bank may refuse to pay its cashier's check is when the bank has its own defense against paying the item and the person attempting to enforce payment is not a holder in due course.

Generally, if you make a deposit in person to a bank employee, then the bank must make the funds available by the next business day after the banking day on which the cashier's check is deposited.

Yes, the remitter signs the back of a cashier's check. The remitter signs the back of the check before it can be converted into cash. For a cashier's check to be valid, a signature from the issuing agent, such as a teller or its employees from the bank or credit union, signs the check.

Cashier's checks are a type of “official check” and the rules surrounding them can be complicated. There's no set or specified expiration date for cashier's checks. Some say cashier's checks don't expire, while others claim a cashier's check is stale (out of date) after 60, 90, or 180 days.

The check payment may have been rejected for a variety of reasons including: incorrect bank routing and account information on check payment, insufficient funds to cover check payment amount, or using accounts that are not authorized for check payments.

Does a Bank Report Large Cash Deposits? For individual cashier's checks, money orders or traveler's checks that exceed $10,000, the institution that issues the check in exchange for currency is required to report the transaction to the government, so the bank where the check is being deposited doesn't need to.

Cashier's checks are signed by the financial institution rather than the customer, and the bank's account is used for the check. That often makes these checks generally considered "safer." By contrast, certified checks are signed by the account holder, and the signature is then certified by the bank teller.