Posted in Blog  
  on Feb 27, 2014

Can a Cashiers Checks Bounce

Can a cashier’s check bounce? This is a very interesting question. If you ask this question to anyone in general, the obvious answer that you would hear is, never. In common opinion, a cashier’s check can never bounce and cannot bounce. In an ideal world, a cashier’s check shouldn’t bounce. But we live in a real world and anything can happen. The truth is that a cashier’s check can bounce. However, the grounds based on which a cashier’s check can bounce are very different from a normal bank check, personal check or a business check.

Prepaid Cashier’s Check

A cashier’s check is prepaid. Whenever an individual gets issued a cashier’s check, the bank deducts the amount of money from his or her bank account and then issues the check. Thus, the bank has already ensured that there is sufficient funds in the account, deducted the money for which the check is being issued and that deducted money is held in the bank’s account. Whosoever the cashier’s check is issued to needs to go to the bank or one of the branches of that bank and gets cash in exchange of the check.

Insufficient Funds

A check normally bounces when there is no fund or there isn’t sufficient fund. Since the money is already deducted, a cashier’s check cannot bounce on this ground. A cashier’s check cannot bounce based on signatures or similar grounds as can be the case with personal or business checks.

False Cashier’s Check

The only ground based on which a cashier’s check can bounce is if it is fake. There are many instances where fake cashier’s checks have made their way into hands of unsuspecting people and they have not been paid by the bank because they are invalid. Another factor that can lead to non-payment of the cashier’s check is if the name or account that has been mentioned as the beneficiary is wrong or the beneficiary doesn’t have the proof to establish that he, she or the account is the legitimate recipient of the cash.

There is no sure-fire way to know if a cashier’s check is fake unless you are an expert on bank checks. The only way to be sure is to receive checks from people you know, trust and can speak to if something goes wrong. It is best to transact in cash if you are uncertain of a person’s intention or if you have the slightest doubt that the cashier’s check may be invalid or fake.


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