Most banks won’t sell you a cashier’s check unless you have an active account with them. While no federal law prohibits issuing cashier’s checks to non-account holders, banks prefer to do business with established clients, especially during high-value transactions.
We’ll discuss three options non-account holders who want to pay by cashier’s check have. Then, we’ll discuss why for high-dollar transitions, such as vehicles, you’re better off skipping the cashier’s check and paying another way.
(The information in this article doesn’t constitute financial advice and is for educational purposes only.)
Cashier’s checks are a popular form of payment for larger purchases because they are secure, limitless, and less cumbersome than carrying around physical cash. The check’s security comes from the fact that they are written by the bank and drawn from their account instead of the payee’s. Since the bank backs the transaction, they prefer to deal with trusted clients linked to the bank through an account.
The easiest way to get a cashier’s check is to open a bank account. Most major banks can help you open an account within an hour, and many allow you to do it yourself online. If you open an account and deposit the necessary funds, the bank shouldn’t have a problem writing you a cashier’s check.
You can ask the bank before account creation if they will provide a cashier’s check immediately or if they require a hold period. If creating a bank account is out of the question, you have a couple of other options.
Since no federal regulation bars banks from offering cashier’s checks to non-account holders, you may find a financial institution willing to do it. Call the banks in your area and ask them. Focus on small banks and community credit unions, since they are more likely to have flexible policies.
If they agree, the process is simple: go to the bank in person with the amount you want the check written for, pay a small fee ($10–$20), and give the bank employee your funds. You should be able to leave the bank with a cashier’s check in less than 15 minutes.
Be aware: this option is a bit of a Hail Mary; most financial institutes won’t agree to issue cashier’s checks to non-members.
Money orders are similar to cashier’s checks since both are backed by the issuing authority and offer an alternative to paying with physical cash. Unlike cashier’s checks, you don’t need a bank account to purchase money orders. You can purchase money orders at:
To purchase a money order, go to a location that issues them, give the cashier the funds for the payment, and pay a small fee (about $10). While money orders seem like a great solution for buying a car or other high-dollar item without a bank account, they’re not.
Money orders are capped at $1000 per order (unlike cashier’s checks that have no limit). That means for a $40k Toyota Tacoma, you’d need to purchase 40 money orders. Carrying that much paper is nearly as cumbersome as a wad of cash, and many sellers won’t want to deal with verifying and cashing a bunch of money orders.
Sellers also refuse money order payments because they are less secure than cashier’s checks; money orders aren’t tied to a government-issued ID. Since cashier’s checks are connected to a person’s bank account, they create a paper trail that makes them less attractive to criminals. Scammers who target car sellers forge money orders and conduct transactions under an alias. Money orders are a bad way to pay for a boat, car, or other high-dollar item, and most sellers will not agree to receive them.
By now, you might be considering opening a bank account and paying with a cashier’s check. While cashier’s checks are a preferred payment method for an expensive item, they have some disadvantages:
Since you’re ready to open a bank account anyway, do that, and then let us introduce you to a better way to pay for high-value items.
DealNow is designed for high-dollar private-party transactions. Save the paper and finish the deal from the convenience of your mobile device.
DealNow is more than a payment method. It is a one-stop platform for conducting fast, safe car transactions. So skip the cashier’s checks.
Verified cashier’s checks are a 100% secure form of payment. Once cashed, the recipient can rest assured they will be paid since the funds are drawn from the bank’s account instead of the payees. Cashier’s checks cannot bounce. To avoid cashing a forged check, recipients should verify the cashier’s check with the issuing bank before cashing it.
There is no maximum limit for cashier’s checks, which is why people use them to purchase real estate, boats, vehicles, and other high-dollar items. Small banks and credit unions might limit cashier’s checks to $100k. Banks might also limit cashier’s checks based on the payee’s account maturity, transaction history, credit rating, or other factors.
Check fees vary by bank, but a cashier’s check costs around $10–$20.
Most financial institutions allow access to funds after one business day.
If the bank suspects check fraud or the depositor has suspicious account activity, large cashier’s check deposits might be held for review.
If you’re selling a car and you want instant access to your funds, use DealNow. Payments are instantly deposited in an FDIC-insured account with quick withdrawals to your regular bank.
Since the bank is the check writer, their account is attached to the cashier’s check. Funds guaranteed by the bank make this type of check preferable to traditional checks (personal checks), which can bounce, and certified checks, which are less secure.
You can get a cashier’s check for as much as your bank is willing to write if you have the funds to back the transaction. Large banks have no maximum limit on cashier’s checks, but small banks and credit unions might limit cashier’s checks to $10,000 to $100,000. Contact your bank to discuss cashier’s check limits.
Cashier’s checks typically expire 90–180 days after being issued. Their expiration date depends on the issuing institution’s policies. In most cases, the recipient of a cashier’s check that expires can contact the issuing bank and order a replacement for a small fee.
It’s best to deposit cashier’s checks as soon as possible to avoid loss, theft, or expiration. You could also take a different payment approach during your next financial transaction. DealNow facilitates instant payments that never “go bad” or face chargeback risks.
If you purchased a cashier’s check and you haven’t given it to anyone or it was recently lost, you can contact your bank to cancel the check. Once a cashier’s check has been cashed, the bank can’t reverse the transaction.
The best financial instrument for private-party car sales is DealNow. Unlike checks and physical cash, DealNow enables instant, verified transfers of large amounts of money directly between buyer and seller.
DealNow secures transactions by:
With DealNow, you get the immediacy of cash with bank-level security. Funds are held in FDIC-insured accounts with easy offboarding to your regular bank.
You can get a cashier’s check with a debit card, or your bank can transfer the money using direct deposit from your account to theirs. The funds for a cashier’s check are taken from your account and given to the bank, and the cashier’s check is written by the bank and backed by their funds.
Cashier’s checks are considered a secure payment option for high-value transactions:
They offer a high level of security, they’re cheap to purchase, and funds are backed by the bank so transactions can conclude before the check clears.
When accepting a check as payment, look out for these common signs of fraud:
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.
A legitimate cashier’s check always has sufficient funds. Unlike regular checks (personal checks), cashier’s checks are drawn directly from the bank’s reserves, not an individual’s account. When a cashier’s check is bought, 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 checks can still be an issue. Always verify the check’s authenticity with the issuing bank before finalizing the sale.
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.
