There is no federally imposed limit on cashier’s checks. That’s one reason people use them for major purchases. While the government doesn’t limit cashier’s checks, your financial institution might. But transaction limits aren’t usually the problem with cashier’s checks; there are other reasons you might want to reconsider them.
Learn about cashier’s check limits and other information you’ll need to pay for a private-party car by cashier’s check. But before you head to the bank, we’ll tell you about an alternative payment method that might convince you to ditch the paper check when you pay for your next car.
(The information in this article doesn’t constitute financial advice and is for educational purposes only.)
The following US banks have no stated cashier’s check limit:
If you have an active account and the available funds to cover the check, the bank will probably fulfill your cashier’s check request.
Regional banks and credit unions might limit cashier’s checks, and their limits might not carry you over the car payment finish line. Bank-specific limits generally fall between $10,000 to $100,000. Contact your financial institution to learn whether or not they issue cashier’s checks large enough to pay for the vehicle you want.
Banks approve most cashier’s check requests. The caveat is that each bank has specific policies on whether or not they should approve a cashier’s check request (even if the account holder has the funds). The age of your account, your relationship with the bank, your financial transaction history, your creditworthiness, and the purpose of the transaction contribute to whether or not a bank will approve your request.
Your bank might require additional security steps, limit the amount they’re willing to write a check for, or deny your request if:
If you have a mature account, a history of mutual sound borrowing, and an above-average credit score, your bank should have no issue with a cashier’s check request for a large amount. And private vehicle transactions are not considered suspicious on their own.
Some banks allow you to request small cashier’s checks (less than $10,000) online without additional verification. For most car transactions, you will need to order the cashier’s check in person at your bank. The verification process depends on your financial institution but generally includes an ID check and a signature verification.
For large cashier’s checks, or if the bank is concerned about your account, expect extra layers of security and verification. Many banks utilize proprietary software to run risk analysis on your account. If they flag your request as suspicious, you may be required to provide additional documentation that justifies the transaction. The bank might also place a waiting period on the check request for several days to confirm that the transaction isn’t impulsive or pressured.
With a bit of coordination, a car transaction can be completed in about a day and the seller will get their funds within 24 hours. Follow these steps for a safe, quick cashier’s check transaction:
To avoid unnecessary delays, tell the seller to cash the check in person as opposed to through mobile banking.
Cashier’s checks are a reliable payment method for larger transactions due to their security and virtually uncapped allowable limits.
Car sellers like cashier’s checks because they can’t bounce. Since the check is written and drawn from the bank’s funds, they can confidently finish the transaction before the cashier’s check clears.
Car buyers like cashier’s checks because they are cheap and a compact alternative to transporting physical cash.
Cashier’s checks are relics of the pre-digital era. Here’s why they aren’t the best payment method for car transactions anymore:
Wouldn’t it be great if there was a payment method that offered the security of a cashier’s check with the speed and convenience of a payment app?
DealNow is a mobile payment app designed for high-dollar private-party car transactions. Save the paper and go digital to see how easy buying a car can be.
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.
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.
When buying a car, 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.
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.
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.
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 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 form of payment 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.
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 cannot have insufficient 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.
