What is a Cashiers Check?
In business it is often the case that a supplier will demand payment before supplying goods. One method of dealing with this is for the business to ask its bank for a cashiers check.
The bank will charge the customers account with the amount and then provide the cashiers check drawn on the bank’s own funds and signed by a cashier.
As the bank has assumed responsibility for the amount, the cashier’s check is in effect guaranteed payment.
A cashier’s check is sometimes referred to using any of the following names:
- Cashier’s cheque
- Banker’s cheque
- Bank cheque
- Banker’s draft
- Treasurer’s cheque
- Official cheque
- Demand draft
- Teller’s cheque
Last modified July 19th, 2020