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.
Posted on Feb 27, 2014


The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More

How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More

The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More

The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More

Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More

Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More

Landlord Inspection Checklist: Rights, Letters, and Reports

Landlords across the state have the prime responsibility to make sure they inspect and up keep their property once they have rented it to the tenants. Inspections can occur monthly or yearly depending... More

Landlord Maintenance Costs and Responsibilities

Everyone knows that a landlord’s job is not easy. These folks have specific duties and responsibilities that they must perform in order to be fair. Being a landlord is not a position but it is, in... More

When to Withhold Tenant Security Deposit

Asking for a security deposit is quite common in property dealings. The reason to ask for a security deposit is to have something that would help a property owner recover some of their financial... More

How to Report Bad Tenants

Bad tenants are the worst-case scenario for any landlord; no one wants them, and if someone has them, they want them out in any way possible. There are times when landlords try as much as they can to... More