A Quick Guide to Certified Checks

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Checks have long been used to carry out a number of business transactions. In the past, if you used a check to pay for your grocery shopping, nobody would have frowned upon you. But now the times have changed and paper money has taken a hold of most of the business transactions. Despite the decrease in the popularity of using checks, their purpose still remains.

Even in today’s modern age, checks are preferred to carry out big transactions instead of cash or debit/credit cards. Certified checks have got a good deal of advantages over credit and debit cards. Here are a few things which can help you briefly understand what actually certified checks are and how to get a certified check.

What is a Certified Check?

In simple words, a certified check is the one which has formerly been verified by the issuing bank. It is a type of advance check meaning that the issuing bank will certify the check in advance by verifying the availability of funds in the holder’s account. Once the check is issued, the bank sets aside the particular amount from the account of the holder. The amount no longer remains available for holder’s usage and it can only be withdrawn upon the delivery of check by the recipient. This is a safe means of funds transfer as it is resistant to check bouncing. Now the question which arises here is how to get a certified check?

Obtaining a certified check

The answer to the question ‘How to get a certified check?’ lies in a few single steps which are explained below.

  • Fill out the amount and recipients information in the respective spaces on the check. Sign the check.
  • Once you have filled and signed the check, take it to the bank. The teller in the bank will verify the availability of funds in your account and certify the check accordingly.
  • Once the check is certified and the amount is set aside, the teller will stamp the check as a proof of verification.
  • It is necessary to have a checkers account in order to get a certified check otherwise a cashier’s check can be obtained.

What is the purpose of a Certified Check?

First of all, a certified check is a full-proof method of carrying out large transactions. It offers peace of mind to the recipient as it cannot be bounced. Since the money is already set aside for the recipient to withdraw, a certified check ensures the delivery of payment with least chances of cheating.

Instead of carrying large amounts of money, certified checks provide you the facility of carrying large amounts on a single piece of paper. This single piece of paper is easier to handle and take care of than carrying large sums.

Certified checks offer a paper trail to keep a record of all the transactions made from your account. You can easily justify any claims against the transactions as paper evidence will be there for you.

By working as a paper substitute for lump sums, certified checks also allow you to pay large amounts which cannot be paid by credit cards normally.