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what is a cashiers check?

A cashier's check (also known as a cashier's cheque, bank check, official check, teller's check, bank draft or treasurer's check) is a check guaranteed by a bank. They are usually treated as cash since most banks clear them instantly. However, banks are permitted to take back money from a "cleared" check one or two weeks later if subsequent processing finds it to be fraudulent. Because customers believe the checks have been found valid and have been converted to cash in hand, customers are readily defrauded by schemes which ask them to part with goods or a portion of the money if it is cleared in a timely manner.
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A check written by a financial institution on its own funds. It is then signed by a representative of the financial institution and made payable to a third party. A customers who purchases a cashier's check pays for the full face value of the check and usually also pays a small premium for the service. These checks are secured by the funds of the issuer - usually a bank - and include the name of a payee (the entity to which the check is payable), and the name of the remitter (the entity that paid for the check).
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Gone are the days when a cashier's check was as good as cash. Criminals now have the printing technology to create official-looking but bogus cashier's checks. Your best advice is to question any check you receive from a stranger, even if your bank allows you to cash it and makes the funds available to you. Days or weeks later, you could learn the check bounced.
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