Question

What is the difference between a cashier's check and a certified check? Can a bank refuse to certify a check? Can a bank refuse to honor a cashier’s check? When writing your response, be sure to discuss the issue and pay attention to your writing.

Answer 1

Cashier's check is drawn against the bank's funds, whih means that in order to get a cachsier's check, the payer needs to deposit the money in bank's account, which then issues a cashier's check which bears information of payee and payer. The money is debited from the account of bank to the payee's account.

In case of a certified check, which is issued by the payer, with his /her signature, and also endorsed by the signature of a bank official indicating that the payee has sufficient balance in his /her account. This check will be honoured when presented to the bank by the payee, and the money is debited from the payer's account.

The former is a relatively safer mean of transaction.

Yes. Bank can refuse to certify a check but will do it if the person has sufficient balance in account. If it does so, it will have to cite a valid reason for doing so. It can also refuse to honour a cashier's check if it has suspicions over the credentials of the payee.