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Most people do not think twice about using a cashier’s check to pay for something, until they find out that the cashier’s check has been voided by the bank.
Cashier’s checks are used by businesses to pay for purchases in the same way that a personal check is used. These checks are also treated the same as personal checks and will be paid when presented to the bank.
This article will explain what a cashier’s check is, how it is used, and how it can be voided.
What is a Cashier’s Check?
A cashier’s check is an instrument that looks like a personal check. Cashier checks are safe and secure and are often used to make payments to individuals or businesses. These checks are purchased with money that comes from a checking account that someone has opened for himself or his business.
The money is deposited into a bank account of the business or individual who has opened the account and then the bank issues a check in his or her name. Paying by cashier’s check is safer than paying money into a personal checking account.
Why a Bank Would Cancel a Cashier’s Check
The most common reason for a bank to cancel a cashier’s check is if the person presenting the check does not have enough money in his or her account to cover the amount of the check. However, some other common reasons include:
The check is lost or stolen
When a bank voided a cashier’s check, it was usually because it was lost, stolen, or altered. If someone tries to use the cashier’s check to pay for something and is told that it has been voided by the bank, then he or she will need to contact the person who wrote the check and get another one made.
If your check was stolen, you’d need to write up a declaration of loss. That way, the bank will know not to accept the check if someone else turns up with it, such as whoever stole it from you.
The check is fraudulent
There’s also the possibility that the check is fraudulent. This is when someone uses a check to make a payment that he or she does not have the authority to make. If this happens, the bank will not accept the check and will void it. Unfortunately, if you’re the receiver of the check, there’s little you can do but to try and get the check writer to re-write up a new one.
A stop payment was made
This is when a bank sends a stop payment order to the person who wrote the check. When this happens, the person writing the check cannot pay for anything using that check. A check writer may want to do this if he or she has realized that they made a human error while writing up the check, such as inputting the wrong amount of money to be cashed out. You’d need to ask for more details on the check writer.