In today’s digital era, there are still instances where paper checks are requested for payment. Depending on the situation, there are a few options for sending money that are more convenient and safer than sending a personal check.
Cashier’s Checks
One option for sending a payment is a cashier's check. A cashier's check is a payment issued by the bank and signed by a bank employee guaranteeing the funds. The bank guarantees the payment by withdrawing the specified amount from the payer's account and issuing a check to the payee. A cashier's check is a more secure payment since the funds are issued directly by the bank.
Money Order
For smaller amounts, a money order can be a secure and cost-effective option. This bank-issued payment, withdrawn from the payer's account and signed by the payer, usually incurs a lower fee. Money orders can be issued at a bank or even at a post office, providing a safe and convenient way to send money.
What is the best option for me?
While both options offer security, a cashier's check involves the bank's direct liability. Both cashier's checks and money orders are good options when the recipient wants assurance that the check will clear. Either check is used commonly when a buyer and seller don't know each other.
Cashier's checks and money orders are both issued at a bank and typically come with a charge.
Both paper payment options offer a level of protection that personal checks cannot. If you’re unsure which option is the best for you, reach out to one of our banking professionals at your local Bar Harbor Bank & Trust branch.
Have questions or need assistance?
If you have questions about this topic or need assistance with your banking needs, please speak to one of our knowledgeable staff at your local Bar Harbor Bank & Trust branch. We’re here to help you build a solid financial future.
