Listen to a Business English Dialogue About Certified check
Naomi: Hi Russell, have you ever used a certified check before?
Russell: Hey Naomi, yes, a certified check is a type of payment method where the bank guarantees the funds are available by verifying the account holder’s balance and setting aside the amount needed to cover the check.
Naomi: That’s right, Russell. It’s often used for large transactions where the recipient wants assurance that the check won’t bounce due to insufficient funds.
Russell: Exactly, Naomi. Since the bank confirms the availability of funds, certified checks are considered more secure than personal checks and are commonly used for real estate transactions, car purchases, or other high-value payments.
Naomi: Yes, Russell. They provide a level of certainty to the recipient that the payment will be honored, reducing the risk of fraud or financial loss.
Russell: Absolutely, Naomi. To obtain a certified check, the account holder must request it from their bank, and the bank will then withdraw the funds from the account and stamp or mark the check as certified.
Naomi: Right, Russell. The bank typically charges a fee for certifying the check, but it’s a small price to pay for the added security and peace of mind.
Russell: Indeed, Naomi. And once the check is certified, it can be deposited or cashed like any other check, but the recipient can trust that the funds are guaranteed by the bank.
Naomi: That’s correct, Russell. It’s important to keep in mind that certified checks have expiration dates, usually within a few months, so it’s essential to use them promptly to avoid any issues.
Russell: Absolutely, Naomi. And if a certified check is lost or stolen, the account holder can usually request a stop payment and get a replacement issued by the bank.
Naomi: Right, Russell. Overall, certified checks are a reliable and widely accepted form of payment that provides security and assurance to both the payer and the payee.
Russell: Exactly, Naomi. They’re a valuable tool for large transactions where cash or electronic payments may not be feasible or preferred.