A certified cheque comes with the bank’s approval stamp, which verifies that the account holder has sufficient funds in their account to cover the cheque. There are fees associated with certified cheques, and it is a reliable method of transaction that many buyers use to prove their credibility to a buyer.
It is more practical for buyers to use a certified cheque for more significant transactions as it reduces the risk of the cheque bouncing or fraudulent activities. However, it is not necessary to use them all the time. So, what are the best times to issue certified cheques?
When Making Large Purchases
Using a certified cheque when making large purchases, such as a down payment on a home or a car purchase from a stranger, can benefit both parties. The seller will have peace of mind there is a lower risk of a bounced cheque. This will create an opportunity for you to look credible and increase your likeliness to secure the purchase.
Not all banks offer certified cheques, so once you find out how to get a certified cheque, you can contact your bank to find out your options. You can visit your local branch and confirm this with a teller. If they provide this service, they will verify you before proceeding with the process.
Reduce the Risk of Carrying Cash
Carrying around a large sum of cash can be risky and is sometimes discouraged as it creates opportunities for money laundering in Canada. It might be challenging to get back your cash if you lose it or it gets stolen. A certified cheque reduces the need to carry cash when you’re about to make a large purchase.
It may also be difficult to withdraw a certain amount of cash at once, as some financial institutions have daily limits. You may need to make multiple visits to the bank until you have the total amount. Getting a cheque saves you the time and hassle of arranging cash.
If Dealing with a Skeptical Buyer
It is natural for a stranger to be suspicious of you during your first transaction with them. Issuing a certified cheque reduces their skepticism and allows you to secure the purchase sooner. The seller may contact your bank to verify the cheque, and your bank can confirm that easily based on your records.
To Build a New Connection
Using a certified cheque may provide you with unexpected benefits, such as forming a new connection. When you’re purchasing a good or service from a stranger, they may begin to trust you more when you provide a certified cheque. This could lead to a new connection in the long term and open new opportunities.
Trying to Prove Credibility
When you’re purchasing something from a person you don’t know personally, they may doubt your credibility. A certified cheque proves that you have sufficient funds in your account to complete the transaction. It allows you to build your credibility and makes you look like a serious buyer. Make sure to follow the rules and regulations to draft a cheque correctly.
A certified cheque can be helpful in many situations, allowing you to expand your purchase horizons. Find out if your bank provides certified cheques before making a big purchase or investment.
Why Try Out Rocket.net - IcyCanada's recommended hosting provider
The Icy Canada team strives to create content that matters. It’s why our content is written by travel writers, authority experts, well-known authors, and niche experts. Our content is also periodically reviewed by expert authors for accuracy and trustworthiness.Why Try Out Rocket.net - IcyCanada's recommended hosting provider