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What’s an authorized test?

The last thing you want to worry about on a big purchase is scam. Whether you are buying or selling something, you don't want your money or investments to be wasted. Making a financial decision can be troubling to you budget if there is a risk of fraud. Certified checks can help increase security here. But first, what is a certified check?

A certified check is authorized by a bank to ensure buyers have the funds before they write the check. This ensures that the person receiving the payment doesn't get stuck and the buyer verifies that they have enough money to make the purchase.

Why Use a Certified Check?

A certified check is one of the safest payment options available. Whenever you sell or buy expensive items, you want to make sure you are getting what you expected. Certified checks generally require a bank or credit union to set aside money in the buyer's account until the check is received. This is how the bank verifies that the buyer has enough cash to make the purchase and the seller gets paid. If you're selling a large ticket item, you can request payment with a certified check.

When buying an expensive item, certified checks provide your seller with added security. This will prove to the seller that you are serious about your choice and that your finances are in place for this investment.

Certified Check vs. Cashier & # 39; s check

A banker's check is also used for large purchases and is approved by a bank or credit union. The main difference between bank drafts and certified checks is where the money is kept until it is paid out. Before signing a bank check, the banks transfer the money to a separate account for security reasons. A bank representative then signs the check at the recipient.

While both types of checks are generally safe, cashier's checks are usually more secure. Because banks will withdraw the buyer's money when the check is authorized, your money will wait at the bank to be paid out rather than on your buyer's account.

How to get a certified check

The illustration shows the steps to certify a check.

For buyers who want to receive certified checks, mostly Banks or credit unions offer these services. While you can purchase them from financial institutions that offer these services, fees may apply to banks that you do not have an account with. If you need a certified check, check out our tips below:

Call your bank to make sure you meet all of their requirements.
Visit the bank in person to avoid mishaps or misunderstandings.
Come with me prepared::
Funds needed for the check amount
Name of the addressee
Your account number
Photo ID

Check your identity and your money with photo ID and bank account numbers for authorization. You may be asked to sign the check in front of a cashier for them to certify.
Bring extra cash In the event that your bank charges a service fee, which is usually anywhere from $ 5 to $ 25. A bank with which you already provide services can waive your fee.

Pros and Cons of Certified Checks

Certified checks reduce the risk of carrying large sums of money or checks. Before choosing your payment option as a buyer or seller, you need to weigh some pros and cons.


Safer way to carry cash: Certified checks are great tools for making big purchases. It can be inconvenient to carry around a large pile of cash or the risk of a regular check. This way, you can cash in your earnings or pay the seller with no worries.
Adds additional payment security: This provides additional security for large purchases that put a buyer's credit or payment in question. Since the bank issuing the check double-checks that the funds are there, the deal becomes riskier.


Scammers may be willing to cheat: One disadvantage of this payment option is the risk of fraud. It is common for companies to buy bulk products outside of the state for a certified check. If after sending your check, if you discover that your purchase was a scam, you may not be able to stop paying.
Possible service fees: As always, banking services usually have a price. In this case, most banks and credit unions will charge you the time it takes to certify the check. Generally, these services cost between $ 5 and $ 25. If you request a certified check from a bank you already do business with, they can waive your fee.

4 tips to prevent check fraud

Illustrations show the 4 ways to prevent check fraud.

Forty-seven percent The loss of money in the industry was due to fraudulent checks in 2018. Taking the extra steps to verify your buyer's payment may prevent you budget from a hit. Follow the steps below to make sure you and your earnings are on the right track:

1. Research your buyer

People can use fake names, addresses, phone numbers, and more to get away with a scam. Without knowing the identity of the person you're selling to, your money can be difficult to get hold of if things go wrong. Find out more from your buyer or surely meet with them in person to get a better sense of their identity.

2. Call or visit the bank of your choice

For more security, contact the financial institution that writes the check. Contact your buyer to find out where they authorize their check. Find the branch phone number and call to see if the check went through. Avoid calling phone numbers the buyer gives you in case they give you the wrong number.

3. Check this with your bank immediately

Go straight to the bank or give a call immediately after paying to make sure there are no complications while processing the check. Check with your bank or credit union to make sure the money is safely in your account.

4. Save all documentation

Receipts, emails, and other information can be a case in point if you don't receive your payment. Keep any paperwork or files until you have been paid in full. As long as you have all the details, you have a better chance of creating a case.

The central theses

A certified check is a check that has been authorized by a bank to ensure buyers have the money before they write the check.
If you're selling or buying a large item, certified checks are a less risky payment option.
If you're not sure about your buyer, dig more. Research them, call the buyer's bank, and save all the documents and files from the exchange.
Call your bank ahead of time to make sure you meet all requirements and ask about service fees.

It is normal to feel uncomfortable selling or buying a large ticket item. You don't want your hard earned money or investments to be wasted on a check or scam. Certified checks can be a safer payment option and it is worth doing additional research Budgets Sake.

Sources: Investopedia | DFI

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