7% of Americans don’t use the Internet at all. For the many Americans who are on the internet for hours each day, this might be a surprising statistic. So, not only is that 7% not seeking entertainment, working, or using social media, they aren’t paying their bills this way either. For them, this means no electronic transfers of funds or quick paying of the electric bill or rent payment. Instead, they might need to write a check and mail it out. Yet, in today’s world, many are reluctant to accept a personal check. They might instead need to use a certified check to make payments to others.
Are you wondering what makes it different and why someone might accept a certified check but not a personal check? Read on to learn all about certified checks.
What Is a Certified Check?
It is a type of personal check. A person who wants to give a certified check must go to their financial institution to secure one. Certified checks have become less and less common. In fact, many financial institutions don’t offer the option anymore.
It basically tells the person getting it that the bank has set aside the funds to ensure the check will be good. The bank will identify that it’s certified.
Most banks will charge you a fee to get a certified check. If someone is reluctant to accept a personal check, giving them a certified check guarantees that it won’t bounce since the bank already set aside the funds.
How to Get One
If you need to pay someone and assure them the check is good, a certified check is one option. You would have to visit your financial institution. Again, in today’s digital world, not all of them offer certified checks as an option.
Basically, your bank will make sure you have the funds you need to cover the check. They will hold the money to cover the certified check so it can’t be used for another purpose. Then it identifies on the check that is certified.
Cashiers vs Certified vs Personal, How Are They Different?
A personal check is a paper check you write from your own checking account. When you sign it, you are telling the payee you have the money in your account. Unfortunately, writing paper checks has become less and less accepted with the onslaught of debit and credit card use.
Again, a certified check is a type of personal check. The bank just takes your funds, sets them aside to secure the check.
A cashier’s check is not written by you or drawn from your account. Instead, when you want a cashier’s check, the bank removes the money from your account and puts it into bank funds. Then the bank becomes the party issuing the check for a cashier’s check. This takes it to a higher level of security that the funds are there since the bank is the issuer.
Knowing How to Use a Certified Check
While certified check use is becoming less and less common, it’s still a way to pay from your own checking account and assure the person you’re paying the money is there when they go to cash it. It can take away their reluctance to accept a check from you.
If you need check-cashing services, we can help. Contact us today to learn more about how we can help you with your check needs.