CASHIER CHECK Meaning and
Definition
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A cashier's check is a type of payment instrument issued by a bank or financial institution on behalf of a customer. It is a secure and guaranteed form of payment, making it a preferred method for large transactions or when the recipient requires assurance of funds.
To obtain a cashier's check, an individual or entity must deposit the corresponding sum of money in their bank account and request the issuance of a cashier's check, also known as a bank draft. The bank designates the funds to be withdrawn and held separately to honor the cashier's check, ensuring that the payment is guaranteed.
Unlike personal checks, cashier's checks are not drawn against the customer's account, but rather from the bank's own funds. This guarantees the availability of funds when the check is presented for payment, eliminating concerns of insufficient funds. As a result, cashier's checks are widely accepted by recipients, including businesses, landlords, or government institutions.
Given their secure nature, cashier's checks are often used for high-value transactions such as real estate purchases, paying off debts, or making significant investments. This form of payment reduces the risk for both the payee and the payer, providing assurance that the funds will be available upon presentation.
In summary, a cashier's check is a financial instrument issued by a bank or financial institution, drawn from the institution's own funds rather than the customer's account. It is a trusted form of payment that provides guaranteed funds to the recipient, commonly used for large transactions and ensuring the security and reliability of the payment.
Common Misspellings for CASHIER CHECK
- xashier check
- vashier check
- fashier check
- dashier check
- czshier check
- csshier check
- cwshier check
- cqshier check
- caahier check
- cazhier check
- caxhier check
- cadhier check
- caehier check
- cawhier check
- casgier check
- casbier check
- casnier check
- casjier check
- casuier check
- casyier check
Etymology of CASHIER CHECK
The term "cashier's check" can be traced back to the mid-17th century, where the word "cashier" originally referred to a person who disposes of money or who manages the cash in a shop, bank, or other establishment. The word is derived from the French verb "casser", meaning "to break" or "to dismiss". In the context of banking, "cashier" refers to an employee who handles and manages financial transactions.
The addition of "check" to the term comes from the late 18th century, stemming from the notion of a written order or document that verifies and authorizes the payment of a specified amount of money from one account to another.
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