A certified check is a check on which the issuing bank affixes an indication that the corresponding provision is blocked on the account for a period of 8 days. The certified check or cheap checks online allows a beneficiary to ensure the existence of the necessary funds.
Characteristics of a check
Stakeholders
The check is a written means of payment that allows an amount to be transferred from an issuer’s bank account to a beneficiary’s bank account:
The issuer is the person who signs the check, his account will be debited at the end of the operation for the amount of the check he has issued.
The issuing bank is the bank that maintains the issuer’s bank account, it debits the issuer’s account for the requested amount.
The beneficiary is the person who cashes the check, his name is indicated on the check, his bank account will be credited at the end of the operation.
Obtaining a certified check
To obtain a certified check, you must make an express request to your bank.
Benefits of the certified check
The advantages of the certified check are for the beneficiary: it is ensured that the provision exists in the account of the issuer for eight days. If he deposits and requests the cashing of the check within this period, he hedges himself against the risk of a bad check.
Certified check: differences with other check forms
Differences with the crossed check
The crossed check is the most common form of check. This is the “normal” check. It does not present any guarantee of the existence of the provision on the account of the issuer whereas the certified check attests to this provision on the bank account for eight days.
Differences with the certified check
The certified check is a classic crossed check which includes a visa signed by an employee of the issuing bank indicating that the provision is available on the account of the issuer on the date of the visa.
The certified check guarantees the existence of the provision for eight days while the certified check does not guarantee the existence of this provision until the check is signed.
Differences with the cashier’s check
The cashier’s check is a check issued directly by the issuer’s bank. The bank itself signs the cashier’s check, while the certified check is signed by the issuer.
The cashier’s check is the most secure form of payment by check. As long as the bank signs the check, the payee is guaranteed to be paid.
So is it a good idea to pay by check?
It depends on the transaction or business you do, it may or may not be convenient to use checks. For example, if you are going to pay a considerable sum of money, it is worth using a check and you will not have to carry cash.
Another way to assess the use of checks is their security, since without your signature it will not be valid. The most advisable thing is to analyze each transaction in particular and take precautions for it.