Can Cashier's Checks Bounce?

A cashier’s check can’t bounce like a personal check can, but they’re not risk-free.

Cashier’s checks are secure, but they’re also time-consuming, and inconvenient. We’ll discuss the upsides and downsides of cashier’s checks and introduce an instant, safe, and user-friendly alternative.

What Is a Cashier's Check?

A cashier’s check is issued and guaranteed by a bank or credit union. Unlike personal checks, cashier’s checks are backed by the financial institution’s funds, which makes them a trusted payment method for large transactions.

Here’s why cashier’s checks are often used in high-dollar transactions such as car sales:

Funds are backed by the issuing bank so they can’t bounce
No transaction limit
More secure than physical cash

Cashier’s checks are a lot safer than personal checks and a relatively efficient way to finish a private sale. But there are better ways to pay.

Why Cashier's Checks Fall Short for Car Sales

Cashier’s checks are a bit old-fashioned. As such, they suffer from some old-fashioned problems.

Check fraud: Criminals forge fake checks and have accomplices pretend to verify the check over the phone. While rare, this can leave a seller empty-handed.
Holds: Cashier’s checks usually clear in a day or two. But checks over $5k, new bank accounts, checks drawn from accounts that have a history of overdrafts, and other suspicious activity can trigger a hold. These can extend the sale from days to weeks.
Inconvenience: To avoid fraud, the vehicle seller should meet the buyer at the latter’s bank, so that a banker can verify the check’s legitimacy. This adds another layer of complexity to the transaction, requiring coordination and wasting time.

If you enjoy long, drawn-out transactions, cashier’s checks are totally fine. But there is a better way.

How To Verify a Cashier's Check

If you’re willing to accept a cashier’s check as payment, you need to verify it to avoid fraud risk. Here’s what you can do:

Inspect the check: Look for signs of tampering or low quality, such as blurred areas, mismatched fonts, or poor-quality paper. Legitimate cashier’s checks have crisp, clear printing and security features.
Contact the issuing bank: Call the bank’s official number to verify the check’s authenticity. Don’t call the number on the check itself. Contact the bank’s call center and confirm the check number, amount, and payee name.
Visit the bank together: If possible, go with the buyer to their bank. Have a teller verify the check and the buyer’s identity in person.
Wait for clearance: For maximum security, deposit the check and wait 1–2 business days for it to clear before finalizing the sale.

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A Better Alternative for High-Value Transactions

If you want the security of a cashier’s check with added convenience and protection, you’re going to love DealNow.

Instant verification: Unlike cashier’s checks that take several days to clear, DealNow transactions are verified instantly.
No bouncing: Just like cashier’s checks, DealNow payments don’t bounce. We clear the buyer’s funds before the sale.
Identity verification: DealNow verifies both parties, reducing the risk of fraud.
Digital bill of sale: Both parties complete a digital bill of sale in our app.
Works 24/7: Unlike banks, DealNow operates round the clock. Complete your sale any time, any day.
No limits: Whether you’re selling an old Corolla or a Bentley, DealNow can process a funds transfer of any amount.

Ready to try DealNow?

Cashiers Checks FAQ

Do banks put a hold on cashier's checks?

Banks often place holds on cashier’s checks, despite them being considered “guaranteed funds.” This is a precautionary measure to verify the check’s authenticity and protect against fraud.

The duration of the hold depends on the bank’s policy and the check amount:

For checks over $5,000, expect a hold of about 2 business days.
Checks up to $50,000 typically clear in about 5 business days.
For amounts over $50,000, the hold can extend to two weeks or more.

Many banks make a portion of the funds available immediately while placing a hold on the remainder. Plan accordingly when accepting a cashier’s check for your sale.

Other factors that may trigger holds include:

Deposits exceeding $5,525 in a single day
New accounts (less than 30 days old)
Accounts with a history of overdrafts
Suspected fraud or unusual activity

These potential delays can complicate private-party car sales. DealNow’s instant payment system eliminates this uncertainty. The seller gets the money the instant the buyer sends it. The deal can get done on the spot. It’s one more way we streamline the car-selling process.

What are the main indications of fraud in check payments?

When accepting a check as payment, look out for these common signs of fraud:

Pressure to release the sale item before the check clears.
Checks for more than the agreed price, with a request to refund the difference.
Checks sent to or from a third party instead of the buyer.
Suspiciously high offers with minimal negotiation.
Checks that appear altered, homemade, or contain poor grammar.
Requests for your banking details to “expedite” the deposit.

Always verify the check with the issuing bank and wait for it to fully clear before releasing your vehicle. If something feels off, trust your instincts and proceed with caution.

Can a cashier's check have insufficient funds?

A legitimate cashier’s check cannot have insufficient funds. Unlike personal checks, cashier’s checks are drawn directly from the bank’s own reserves, not an individual’s account. When a cashier’s check is purchased, the buyer provides the funds upfront, which the bank then guarantees.

This doesn’t mean cashier’s checks are immune to fraud. While the check itself can’t “bounce” due to insufficient funds, counterfeit or altered cashier’s checks can still be an issue. Always verify the check’s authenticity with the issuing bank before completing your sale.

What is the maximum amount for a cashier's check?

There’s no universal maximum amount for cashier’s checks, but some banks impose their own limits.

DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.

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