What Is a Certified Check?

A certified check tells a seller that your bank has verified that you have sufficient funds to cover the amount. In contrast, a cashier’s check is when a financial institution covers the funds for the check.

Certified and cashier’s checks are useful tools for completing large purchases. With greater security than personal checks, they are also more widely accepted when completing a purchase where you can’t use cash or a credit card. As you look for answers to the question of what a certified check is and try to compare it to a cashier’s check, know that the largest difference is who is securing the funds. A certified check is one you draw from your bank account, while a cashier’s check is something that a bank or credit union funds. Here’s everything you need to know about these payment forms and how to get them.

What Is a Certified Check?

The basics of a certified check and a personal check are very similar. A certified check is a method for transferring money from your personal account to someone else’s to pay for something. Like a personal check, it will still bear your name, account number, and signature. 

A certified check goes through a verification process before issuing. Your bank or credit union will certify that you have sufficient funds to cover the check’s value, hence the name certified check.

This certification process gives your recipient confidence to accept the check and complete the transaction. Thus, the check’s recipient doesn’t have to deal with a bounced check. 

Most financial institutions charge $15-$20 for a certified check. Check with your bank to learn your specific cost.

What is the Difference Between a Certified Check And a Cashier's Check?

The largest difference between a certified check vs. a cashier’s check is where the funds are coming from. With a certified check, the funds come directly from your account, like a personal check. With a cashier’s check, the bank or credit union guarantees and issues the funds. Because the bank is guaranteeing a cashier's check, it is considered to have stronger backing, though the certification process for a certified check is still a very strong guarantee.

Another major difference is acceptance. Cashier’s checks are more widely accepted for large purchases. Each cost is very similar, though you might pay a little more for a certified check, depending on your financial institution. 

A cashier’s check is more widely available when accessing these various check options than a certified check.

How & Where to Get a Certified Check

The best place to get a certified check is through your bank or credit union. However, if you use an online bank or another institution that does not offer them, you can get a certified check from any bank that offers it, even if you don’t have an account there. It is rare for financial institutions where you have no accounts to offer a certified check. Getting a certified check at a bank with no accounts will be more involved. 

Here’s how to get a certified check:

1. Review your checking account to ensure the funds are available to cover the full check amount.
2. Call the financial institution to ensure they offer certified checks.
3. Go to a physical branch location. You cannot get a certified check online.
4. Provide the teller with the details for your check, including the amount, recipient, and details you want in the notes section.
5. Verify your identity by showing a valid photo ID.
6. Write your check in front of the teller.
7. The bank will set aside the funds you’re writing for to prevent you from using them for other means between the moment you sign the check and when the recipient tries to cash it.
8. The teller will then certify it with a stamp.
9. Pay the fee for your certified check. 
10. Hold onto the receipt for your certified check until the funds clear your account.

Benefits of Certified Checks

The main reason someone wants a certified check when selling a large item is to avoid receiving a check that bounces. If the check does bounce, it can mean that the seller cannot get the goods that they sold back. Now they are out the funds and the goods.

Some other benefits certified checks provide include:

• The check recipient knows the issuer has the available funds to cover the check.
• The check recipient knows the check is valid because the bank teller verified the person’s identity.
• Funds are guaranteed.

How Much Does a Certified Check Cost?

Certified checks cost $15-$20, depending on the financial institution verifying them. In contrast, a cashier’s check costs $10-$15.

How to Protect Yourself From Certified Check Fraud

While certified checks are very secure, they are not foolproof, meaning you can become the victim of fraud if you aren’t careful. Banks do their best to spot fraudulent checks, but it can take up to a few weeks to detect one.

The most common way that fraudsters use certified checks is to write a check for more than the sale price for an item. Then, they request that the seller transfer the difference between the check and the cost of the good to their account. Then, when it becomes clear that the check is fraudulent, the fraudster can still get away with the difference in funds the seller had transferred to them and the fraudulent goods they purchased.

To protect yourself from fraud, you should call the issuing bank. Do independent research to find the phone number, and don’t just call the number on the check. Fraudsters know this is a common practice and can put a fraudulent number on the check. When you call the bank, ask them to verify the check number and the account holder’s name.

Completing Purchases Securely

When you want to complete a large purchase, a certified check is a good option to protect yourself and provide confidence for the seller. Talk to your bank about whether this is an option they provide.