Cashier’s Check

What is a Cashier’s 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 it’s bank for a cashier’s check.

The bank will charge the customers account with the amount and then provide the cashier’s 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

For further information on a cashiers check see the Wikipedia definition.

Learn a new bookkeeping term

Random bookkeeping terms for you to discover.

Link to this page

Click in the box and paste this cashier’s check definition link to your site.

Return to the Dictionary

Last modified March 23rd, 2016 by Team

You May Also Like