Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.
Businesses and individuals often require cashier’s checks when accepting large payments or payments from people with low credit scores. They prefer cashier’s checks because the money does not come directly from the payer’s account. Instead, it comes from the bank’s account. Because of this, you might find yourself in a difficult situation when you ask, “Can you stop payment on a cashier’s check?”
Before exploring whether you can stop payment on a cashier’s check, take some time to learn about how the payment option works. Some people confuse money orders and cashier’s checks. While the two payment options share some traits, they do not function in precisely the same way.
When you get a cashier’s check, you will need to go to your financial institution to make the purchase. Most issuers will only write cashier’s checks for their account holders, although some will provide cashier’s checks to non-members in exchange for higher fees.
The clerk will give you a document to list the important details, such as the name of the recipient and the amount of money you want.
You can either give the clerk cash or have the money transferred from an existing checking account with the bank or credit union. If you do not have a checking account, you can either transfer money from a savings account or request a money order instead.
The clerk will give you a cashier’s check that includes the name of the recipient and the amount of money you requested.
Can you stop payment on a cashier’s check after this point? That largely depends on the institution.
You can cancel a personal check rather easily as long as you don’t mind paying a fee for the service. Stopping payment on a cashier’s check, however, takes a lot more effort.
Perhaps you want to know whether you can stop payment on a cashier’s check because you have:
Now, you have a cashier’s check that you cannot use. Can you stop payment on a cashier’s check to get your money back? The financial institution that wrote the check gets to make that decision. Even if the bank agrees to stop payment, you will need to follow several steps and pay some extra fees.
If you absolutely need to stop payment on a cashier’s check, contact your financial institution to ask about stopping the payment. Assuming that they have a process in place, expect to:
Keep in mind that your bank can refuse to stop payment on the check.
That doesn’t necessarily mean you have run out of options, though. The bank manager might change their mind when you threaten to withdraw your funds and close all of your accounts, including your credit card accounts.
Do not threaten to leave, though, unless you can follow through with the plan. Your words will carry more weight when you have enough money in your checking account to repay your entire credit card debt. If you have a high credit card balance and very little money in your checking account, the bank might call your bluff.
Nearly everyone needs a cashier’s check at one point or another. Perhaps you want to buy a new car. The dealership will not accept cash because keeping that much money on location creates risk. The dealership will either require a cashier’s check or for you to rely on financing.
There are times, though, when you can avoid cashier’s checks. If you want to rent an apartment, the landlord will look into your credit history to determine your level of risk. People with exceptional credit histories can often use regular checks to pay their deposits. If you have poor credit, the landlord might ask for a cashier’s check because it offers secured funds.
Some of the simplest ways to improve your credit rating and make cashier’s checks less necessary include:
Ideally, you will never need to stop payment on a cashier’s check. If you do, it helps to have a financial history that shows you represent very little risk and use money wisely.