Bank checks and certified checks are two types of “official check”, or a check that is guaranteed to clear. Both types of official checks are verified and guaranteed by the issuing bank. However, they are not the same. There are a few key differences between a bank check and a certified check, most notably the account against which each type of check is drawn.


With a bank check, the bank removes funds from the payer’s account and then writes the check against this escrow account to guarantee payment. With a certified check, the check is drawn against the payer’s checking account with a guarantee from the bank that the account contains sufficient funds to cover the transaction.

What Is a Bank Check?

What Is a Certified Check?

Safer Way to Pay

When Cash Is Impractical

Businesses also use certified and bank checks to make large purchases that are impractical to make with cash, though a valid bank check or certified check is the same as cash. As such, a vendor can accept one without having to be concerned about the payer’s credit score. Often, bank checks and certified checks are used instead of cash because they are safer to transport and guarantee. In addition to these benefits, it is easier to protect a check from getting lost. You also cannot miscount a check like you can miscount cash.

In some cases, a bank is liable for paying a certified check from its funds. Whether the bank is responsible for a certified check depends on the circumstances surrounding the incident. When the certification on the check is forged, the bank is not liable for paying it. But when the bank certifies a check in error, the check may still be legitimate, and the bank may be required to pay the recipient.

When there is a problem with a certified check that results in the payer not being able to use the check, she may seek compensation for her related damages from the bank or the customer, depending on which party is determined to be the negligent party under the rules imposed by the Uniform Commercial Code.

Benefits of Certified Check vs. Bank Check

Bank checks and certified checks have a significant advantage over personal checks and credit; they are guaranteed. Even a payer with excellent credit can default on their payment or declare bankruptcy, which puts the recipient in the difficult position of having to collect the debts she is owed. In cases where a delinquent payer declares bankruptcy, the creditor might never get paid or might have to settle for receiving a portion of the total amount the payer owed.

Personal checks also don’t offer a guarantee that the recipient will get paid. A check can “bounce”, which means there are insufficient funds in the payer’s checking account to cover it, and this can leave the recipient at a financial loss. Although a bounced check victim can file a lawsuit to pursue compensation for the damages he suffered from a bad check, this is an expensive, time-consuming process that can end up costing the victim more money than he would have received if the check had cleared.

Requiring a purchaser to use a bank check or a certified check alleviates a vendor’s concern about getting paid promptly and in full.

Why Would a Business Choose a Certified Check vs. Cashier's Check or Vice Versa?

Generally, businesses choose bank checks over certified checks. Bank checks are becoming more and more popular for companies to use because there is a lower chance of forgery with bank checks. They are the safer, more secure option. A certified check can be forged in a few different ways, and a forged certified check can spell legal difficulties and expenses for every party involved in the transaction.

When either type of official check is lost, destroyed or stolen, the issuing bank can require a security or bond payment before issuing a new one. Additionally, the bank has the right to refuse to honor a check if it has been modified in any way, even if the signature and certification are legitimate.

For example, changing the amount of money a certified check is for, even when there are sufficient funds in the payer’s account to cover it, can render the check void. When the bank wrongfully dishonors a legitimate check, it may be held liable for the damages either party involved in the transaction suffer because of the bank’s error.

Start With a Business Checking Account

To write certified checks from your business, you need to establish a checking account for the business. A business bank account legitimizes your business. If you don't have a business checking account, you can obtain a bank check from a bank or a credit union, or you can use a money order to make a larger purchase.

As a business owner, you should have a checking account for your business because it provides an additional layer of legal protection by creating an entity separate from you as an individual. If your business is sued, your assets are protected when your business assets are kept in a separate account. Having a separate business account also makes it easier for you to manage sales and expense transactions and handle your business’ tax bill.

You might need to open a few bank accounts for your business if you’re not sure if one account is sufficient, or if you’ll need multiple accounts for multiple expenses and income streams. Talk to a business or financial advisor to determine the right answer for you and your business.

Shop Around for the Right Bank

Shop around for the right bank at which to open your business checking account and any other accounts you might want, like a business credit card. Different banks offer different account servicing options, and some provide specialized services for specific industries. The bank where you have your personal account could be the right one for your business account, but do your research instead of using this bank because it is easy.

With your federal tax ID and registered business name in hand, head to the bank to open the account. You can also open your account online with some banks. You will need to provide proof that your business is registered with the state where it is based and that you are the business owner.

Other Essential Business Accounts 

You also need to open a merchant account for your business to accept payments from customers. If you anticipate receiving credit card payments, open a credit card merchant account. While creating these bank accounts, you might also want to set up online payment accounts on platforms like PayPal or Dwolla and link them to your merchant account, which will make it easy for funds from sales to go directly into your accounts. Keep a comprehensive record of all your business bank accounts and the online platforms to which they are linked.

Using certified checks and bank checks are one way to make and receive secure payments, but when you are doing online transactions, your records and account security measures such as strong passwords are your best tools against fraud. In your records, be sure to keep track of:

  • all business expenses, such as employee salaries and equipment acquisition costs
  • your business taxes
  • all business income
  • any charitable donations the business makes

With the bank you choose, you can obtain bank checks and certified checks to use them as your business needs. Often, these kinds of checks are used to buy large pieces of equipment, such as a company vehicle or specialized machinery. You also might use this type of check to pay the security deposit and first month’s rent on a new lease for office or shop space. With an official check, you have the peace of mind that your payment will be accepted, and the other party can rest assured that the check your business wrote will clear.