certified check
A certified check is a type of personal check that guarantees there will be enough funds available for the recipient by the issuing bank. A bank certifies the check and verifies that the account holder’s signature on the check is genuine.
Certified checks are used to increase confidence that the creditworthiness of the account holder is legitimate and so the check does not bounce. In larger transactions, it may be difficult to pay with cash, so a certified check can be used to secure the amount compared to a personal check, which may bounce.
Both certified checks and cashier’s checks are used to guarantee payment. However, for a cashier’s check, a payor must first transfer the money to the issuing bank before receiving the cashier’s check. At the time of payment, it is the bank’s money, rather than the payer’s, that guarantees the payment. While a certified check is still category of personal check (drawing money directly from the payer’s account) it only ensures that sufficient funds are available in the payer's account at the time of certification. Therefore, a bank only offers verification for a certified check to ensure the check’s validity. Accordingly, a certified check is less secure than a cashier’s check in terms of guaranteeing the source of money.
[Last reviewed in February of 2025 by the Wex Definitions Team ]
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