What Happens If You Lose a Cashier’s Check?
Written by
Elizabeth Constantineau, AI Editor
Edited by
Emily Gadd
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
A cashier’s check is a reliable and secure form of payment, particularly for larger transactions. It’s a financial tool that provides an extra layer of credibility, offering peace of mind to both sender and receiver.
However, because cashier’s checks are guaranteed funds, losing one can create a tricky situation. Here’s what to do.
What to Do Immediately After Losing a Cashier’s Check
Reach out to your bank as soon as possible. Explain the situation to them and provide the details of the lost cashier’s check. This could include the check number, issue date, exact amount and payee name.
How to Cancel a Lost Cashier’s Check
Each bank will have their own policy for how they handle lost cashier’s checks. In some cases, the bank may be able to stop payment on the cashier’s check. But a stop payment is not always possible because cashier’s checks are guaranteed funds.
Understanding Indemnity Bonds
Depending on how much the cashier’s check is for, your bank might require a type of surety bond known as an indemnity bond.Â
An indemnity bond is a type of insurance that says that you, not the bank, are responsible for the funds if the lost check is cashed by someone.
To buy an indemnity bond, you’ll have to find an insurer that will sell you one. This may take some time as the insurance company will often perform a background check and check your credit report.
Once you’re approved, you will have to pay a fee to the insurer. This fee is usually based on the amount of money you want to insure.
Replacement Process for a Cashier’s Check
If the bank requires an indemnity bond, you will need to do that before you get a replacement check. Once you have the bond, it can often take up to 90 days for the bank to reissue the check. This is to see if the check will turn up or be cashed.
If the bank cannot stop payment, you’ll have to get a declaration of loss form from them. This document will detail the circumstances of the loss
Once the waiting period is over and the bank has confirmed the original check hasn’t been cashed, you’ll receive a replacement check or a reimbursement.
Risks of Losing a Cashier’s Check
If you lose a Cashier’s Check and get a replacement, there is a chance you will have to pay for both checks if the original one is cashed. If you have an indemnity bond, the insurance company will pay the bank for you. However, you will then have to pay the insurance company.
Preventing Loss of a Cashier’s Check
Treat a cashier’s check like cash, because it basically is. Make sure you only send cashier’s checks to people you know. If you must mail a check, pay for Certified Mail so that you can track the location of the check.
If possible, opt to pay digitally instead.
What Happens If a Lost Cashier’s Check Is Found?
If you find the lost cashier’s check after reporting it to your bank, let your bank know right away. They will let you know what the next steps are. The process may be different if the check had already been cancelled.
Final Take
Losing a cashier’s check can be stressful. By taking the appropriate steps and maintaining communication with your bank, you can navigate the situation effectively and securely.
FAQ
Here are the answers to some of the most frequently asked questions regarding lost cashier's checks.- Can a cashier's check be replaced if lost?
- Yes. Contact your bank to learn about their policy for replacing a check. There may be fees or a requirement for insurance before the the replacement check is issued.
- What if a cashier's check is never cashed?
- If you end up not using your cashier's check, let your bank know and follow their process.
- Can a cashier's check be cancelled?
- Yes. However, if the check is lost, this process can be difficult. Ask your bank to issue a stop payment.
- Can I return a cashier's check if I don't use it?
- Yes. In most cases, if you don't use a cashier's check, you can take it back to your bank and get a refund.
- How long does it take to get a cashier's check reissued?
- Many banks will put a 90 day hold before they reissue a lost check in case it is found.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
