Are the terms and vocabulary used by the employees of the bank confusing to you? You are not the only one. The average American is not fully aware of what the words used in banking conversations really mean, and in the examples below I am going to show you how the definitions of these terms differ depending on the source . . . Webster’s Dictionary, Banking Glossaries and real world usage.
Let’s start with the definition of a cashier’s check.
: a check drawn by a bank on its own funds and signed by the cashier
“cashier’s check.” Merriam-Webster Online Dictionary. 2009.
Merriam-Webster Online. 2 September 2009<http://www.merriam-webster.com/dictionary/cashier’s check>
A bank-issued check, also called official check or treasurer’s check, signed by
a bank officer and drawn against funds of the bank itself. A cashier’s check is
generally regarded as good as cash.
“cashier’s check.” Business Dictionaries from AllBusiness.com. 2009.
A check drawn on the funds of the bank, not against the funds in a depositor’s
account. However, the depositor paid for the cashier’s check with funds from
their account. The primary benefit of a cashier’s check is that the recipient of
the check is assured that the funds are available.
“cashier’s check.” Dictionary of Bank Terms and Phrases. 2009.
Knowing what we do about counterfeit cashier’s checks, the second two definitions are very misleading. One says that a cashier’s check is generally regarded as good as cash, and the other says that the recipient can be assured that the funds are available. Both of these statements would give people a false sense of security about the check, making them believe that they are valid checks. This is exactly why so many people become victims of Counterfeit Cashier’s Check Scams. In the minds of most Americans, a cashier’s check represents a valid and secure document to use, and they put their trust in that image of security.
Co-Founder of ScamVictimsUnited.com
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