Choosing the right payment method for international transactions can significantly impact your bottom line.
While an international cashier's check offers the security of bank-guaranteed funds, modern digital alternatives may provide faster, more cost-effective solutions for your global payments.
This guide examines how international cashier's checks work, when they make sense for your business, and which alternative payment methods might better serve your cross-border transaction needs.
What is a cashier's check?
A cashier's check represents a direct guarantee from a financial institution such as a bank or credit union, making it a more secure form of payment than business or personal checks. When you request a cashier's check, the bank verifies the funds in your bank account, withdraws the money from your bank account immediately, and issues a check drawn against the bank's own accounts.
Cashier's checks from credit unions work the same way.
Thanks to this process, a cashier's check doesn't run the same risk of "bouncing" that business or personal checks do when the account holders don't have sufficient funds.
This bank guarantee has traditionally made cashier's checks a trusted option for large transactions, such as a down payment, particularly when the parties don't know each other well or when proof of guaranteed funds is required.
Can you use a cashier’s check for international payments?
Yes, cashier's checks can be used for international payments, but the only way to be sure that a specific international bank will accept a cashier's check is to ask ahead of time.
When used as an international payment method, a cashier's check will also have to be converted into foreign currency, which can involve unfavorable exchange rates and additional fees.
Many businesses find that today's digital alternatives are easier and more cost-effective for cross-border transactions, not to mention safer than mailing a large check internationally.
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Benefits of using cashier's checks for international transactions
Traditionally, cashier's checks have been generally preferred over standard business or personal checks, especially for large international transactions, due to the following benefits.
Security
The primary advantage of cashier's checks is their bank-backed guarantee.
Unlike personal or business checks, cashier's checks represent funds that have already been withdrawn from the sender's account and guaranteed by the issuing bank or other financial institution, reducing the risk of insufficient funds.
Convenience
Obtaining a cashier's check is relatively easy. All you need to get a cashier's check is a bank account with enough funds to cover the amount.
Most banks will issue a cashier's check on demand, though you'll need to visit a branch in person.
Low fees (but there's a catch)
The associated fees for issuing a cashier's check are often lower than international wire fees, but mailing the cashier's check internationally can add a significant cost to the transaction depending on how you send it.
Proof of payment
A cashier's check provides clear documentation of payment, which can be important for accounting and legal purposes, especially when sending money overseas.
The physical check serves as tangible evidence of the transaction and the bank's guarantee.
Drawbacks of using cashier's checks for international transactions
Compared to today's digital payment methods, cashier's checks come with significant drawbacks.
Fees
While the initial fee of issuing the check may seem low, international cashier's checks often incur multiple charges that add up:
- Fee for issuing the check
- International processing fees
- Currency conversion fees
- Cost of mailing the check, especially with international tracking
Processing time
A cashier's check can take longer to process than other payment methods, especially when sent internationally. This can delay the recipient's access to funds, which may be problematic for time-sensitive transactions.
Risk of loss, theft, or fraud
While cashier's checks are generally secure, there's still a risk that the check will be lost or stolen during transit. If the check ends up in the wrong hands, that person could also attempt to impersonate the payee and deposit the check.
Currency exchange
The exchange rate offered by banks for cashier's checks may not be as favorable as that for electronic payment methods—or it could become less favorable in the time it takes for the check to arrive.
Is a cashier's check the right choice for your international business payment?
For most modern businesses, international cashier's checks are rarely the optimal choice for cross-border payments.
They make sense primarily in specific situations:
- When the recipient specifically requires a cashier's check
- For one-time large transactions in which physical proof of payment is required
- In regions where digital payment infrastructure is limited
However, if you need to make regular international payments or prioritize speed and efficiency, digital payment solutions typically offer better value and security.
Alternative options to international cashier's check
If you're looking for alternatives to cashier's checks for international transactions, several options are available.
Wire transfers
International wires can transfer funds electronically from one bank account to another across borders, often completing the transaction within a day or two. While a wire transfer may come with higher fees, as well as intermediary bank fees, it's generally considered safe and efficient and is widely accepted as a way to transfer money for larger transactions.
Money transfer services
These services are popular for personal transfers and can be a reasonable option for business payments in some situations. However, many of them aren't set up for business use, and they generally don't integrate with ERPs or accounting software.
Because these services don't typically connect to AP systems, you'll have to enter the payment information manually. If you enter the wrong amount or send the payment to the wrong place by accident, reversing the error can be difficult, especially when paying internationally.
BILL
If you need to make business-to-business payments—whether at home or abroad—the BILL platform offers modern digital options that are tailored to business needs.
How to send international payments with BILL
The BILL platform can help you streamline your international (and domestic) payments.
- Local Transfer lets you pay businesses in many countries through local digital networks, in local currencies—with funds available as quickly as the same day in some cases.
- International wire transfers are also available through the same platform.
- Automated approval rules help you make sure invoices are verified internally and approved before sending payment
- Strong security protocols help protect against potential fraud and unauthorized access.
- The platform integrates with major business accounting software and ERP systems for an automatic, real-time sync, so your books stay up to date.
What our customers say about BILL international payments
“With BILL Accounts Payable, we’ve streamlined our international payments process, we don’t have to hire a staffing agency and can pay engineers directly. Being able to pay them through BILL has changed their lives and allowed them to view us as a huge opportunity.” — joe coffee
International cashiers check FAQs
Here are quick, easy answers to some of the most common questions about international cashier's checks.
What are the fees associated with using cashier's checks for international transactions?
While the fee from financial institutions for issuing a cashier's check is usually nominal, businesses should include all of the associated costs in their calculations, including the cost of sending the check internationally as well as the potential risk of loss or theft.
Where can I get an international cashier's check?
You can get a cashier's check from your bank or credit union, but be sure to ask your bank about any requirements or restrictions on issuing a cashier's check for international use.
Before you send money overseas with a cashier's check, you'll also want to check with the recipient's local bank in their country to make sure they'll accept a cashier's check from your bank or credit union.
What's the difference between a cashier's check and a money order?
Both cashier's checks and international money orders guarantee their funds, but they're not the same thing. You can get a cashier's check from banks and credit unions as long as you have an account there with enough funds to cover the cashier's check. You can get money orders from other sources, such as a grocery store or post office, so you don't need an account—instead, you pay for the money order.
Money orders are often less expensive than other payment methods, including cashier's checks, often for only a few dollars, but the amount of a money order is generally more limited. So you may need to get a cashier's check for large payments.
