Skip to content
 

Using Personal Check to Purchase A Cashier's Check

Answered by: 
Kathleen Blanchard | CRCM

Question: 
If a customer brings in a check that is made payable to them and they would like to purchase a cashier's check, is it necessary to have them deposit that check into their personal account first? Then we would do a withdrawal from that account to make the purchase. If it is necessary to deposit it first, and can you please explain to me why?
Answer: 

My primary concern would be if the individual already has sufficient funds in their personal account to cover the amount of the cashier's check. The bank is making an irrevocable promise to pay the cashier's check (the check is from the bank), and must pay even if the check used to purchase it is returned.

Additionally, banks should want all activity to go through the customer's account so that activity can be tracked, monitored, and retrieved.

First published on 11/03/2014

Filed under: 
Operations
Filed under operations as: 
Cashier's Checks

Report a problem with this page

Search Topics