You can cancel a cashier’s check in certain situations but not if the payee has already cashed it. Learn about cashier’s checks, when you can cancel, why people want to cancel, and what happens after the check is cashed.
We’ll also introduce you to DealNow, a safer, faster way to pay for a car or other high-dollar private-party item. DealNow gives you the tools you need to evaluate your purchase so you won’t want to cancel the purchase.
A cashier’s check is a secure form of payment issued directly by a bank. Unlike a personal check that draws from the payer’s account, a cashier’s check draws from the bank’s account and cannot bounce. The financial institution guarantees the funds, which is why private parties choose them for cars and other major transactions.
The purchaser can cancel a cashier’s check in specific situations, but the process isn’t as simple as stopping payment on a personal check. Since banks guarantee these funds, they require careful documentation and verification to protect themselves against fraud or loss.
When there’s an error on the check—like a wrong amount or incorrect payee name—the issuing bank can cancel and reissue it. This is one of the simpler scenarios for cancellation since the bank can verify the error and physically reclaim the check.
If a cashier’s check is lost or stolen, the bank can prevent unauthorized use. The purchaser needs to file a “declaration of loss” with the issuing bank. This protects the purchaser and the bank from fraudulent activity.
If a check becomes damaged or destroyed before it can be used, the bank can cancel it. The purchaser will need to provide as much of the original check as possible, along with details about how it was damaged.
Sometimes a deal falls through before the check is cashed. In these cases, as long as the check hasn’t been deposited, cancellation is possible.
For nullified transactions or issuance mistakes, the cancellation process is easy. The purchaser takes the check to the bank and asks them to cancel it (or issue a corrected check). For loss, theft, or damage, the process takes time and requires verification.
The purchaser needs to:
Banks require documentation before they will void a cashier’s check:
Some banks charge fees for checking cancellation and replacement requests. For buyers and sellers in a car transaction, a 90-day waiting period can completely derail the sale. That’s why both parties must be confident about the transaction before exchanging a cashier’s check.
When someone deposits a cashier’s check, the transaction is permanent. Unlike credit cards and some other forms of payment, there’s no “chargeback” feature. The buyer’s funds are gone.
Sometimes buyers try to cancel a cashier’s check if they feel buyer’s remorse or discover an undisclosed issue with their purchase. This rarely works. Unless there’s clear evidence of fraud, courts generally view cashier’s checks as completed transactions. Getting money back would require legal action against the seller, not cancellation of the check.
Even for uncashed checks, banks enforce time constraints. Missing the reporting window for a lost or stolen check—usually 90 days from issuance—can mean losing your chance to cancel it.
The person who receives the cashier’s check can’t cancel it. Only the purchaser (or buyer) can cancel the check. If two parties decide not to continue with a transaction, the seller must return the check to the buyer.
Don’t end up in a situation where a cashier’s check needs to be canceled. Buyers are better off doing their due diligence before purchasing a vehicle. Proper preparation eliminates most scenarios where someone would want to cancel a payment. Let’s look at what buyers and sellers can do to bring trust and confidence to car transactions.
A vehicle history report and title check are a buyer’s first defense against acquiring someone else’s problem. This report pulls data from insurance companies, repair shops, and state agencies to show the car’s full story. It includes:
Vehicle history reports and title checks cost less than $50 each and save buyers from ending up with a stolen vehicle or a junker.
A qualified mechanic checks all major systems and gives the buyer a report of current issues and upcoming maintenance needs.
The inspection covers:
An assessment prevents misrepresentation scams and lets the buyer walk into the purchase without illusions about the vehicle’s quality.
A bill of sale is a legally binding document that protects the buyer and seller in a private car sale. This document clearly states what was bought, for how much, and under what conditions. It prevents future disputes about the sale price, the car’s condition, or the terms of the sale.
Many states require a bill of sale, but it is a good idea no matter where you live. A bill of sale generally includes the following:
A bill of sale should also note whether the sale is “as-is” or includes warranties.
The bill of sale holds both parties to their word. If the seller misrepresented the vehicle, the buyer can use this document in court. If the buyer decides to cancel a cashier’s check and get their money back, the bill of sale protects the seller by proving the sale conditions.
If you want to feel confident about your purchase, DealNow is your payment solution. Our platform enables instant, no-limits payment from your mobile device, and gives buyers and sellers the tools they need to make informed decisions.
Here’s what you get with DealNow:
DealNow kicks bank visits and paper checks to the curb to give you everything you need in one intuitive app. Transact with confidence, and start a deal now.
No. Each financial institution has specific payment policies. Some require indemnity bonds or surety bonds, while others just need a declaration of loss. Contact your bank to understand their requirements and time constraints.
Canceling a cashier’s check won’t impact your credit report. However, if you’re canceling because of fraudulent charges or transactions, you should sign up for credit monitoring services to protect yourself from future fraud.
Cashier’s checks are guaranteed by a bank’s reserves, but the actual transfer between financial institutions takes several days. Banks also sometimes place holds on large deposits, even for cashier’s checks, and the full amount might not be available for several business days.
Delays complicate private vehicle sales, especially when sellers want to confirm the payment has cleared before releasing the title. Digital payment services such as DealNow offer instant verification and transfer for immediate access to funds without holds or delays.
Banks will verify their own cashier’s checks during banking hours. Many banks won’t verify other institutions’ checks because of the potential for check scams. The safest way to verify a cashier’s check is to meet at the issuing bank during business hours. This requirement can complicate scheduling, especially for potential buyers and sellers with busy schedules or when the bank isn’t conveniently located for both parties.
Cashier’s checks can usually be written for any amount as long as you have sufficient funds. For large transactions, many financial institutions require advance notice or additional verification steps. Some banks also charge higher processing fees for larger amounts.
Each cashier’s check has a unique tracking number that allows banks to trace the transaction. This process takes several business days and usually requires filing paperwork with the financial institution. If a check is lost or stolen, the tracking process becomes more time-consuming and may involve additional fees for cancellation and re-issuance.
Physical cash is risky for high-value transactions. It can be lost, destroyed, or stolen. It’s also inconvenient since both parties need to count it and the seller needs to verify each bill.
Most private sellers accept traditional forms of payment such as cash, cashier’s checks, or bank transfers. Some use digital payment platforms, though most have transfer limits too low for car purchases.
DealNow combines the best features of other payment methods: unlimited payments, instant payments, no business hour restrictions, bank-like security, and escrow-like safeguards. We also walk both parties through the transaction process to streamline private car transactions.
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.
