What is a Registered Check?

A registered check is both issued and guaranteed by a bank on behalf of a customer that provides it with the funds for the check. The funds may come from a cash payment, or from the customer’s bank account. Banks charge a fee for this service, since they are providing a guarantee of payment.

Advantages of a Registered Check

A registered check is a significant advantage for the recipient, because it provides this party with a guarantee that the funds associated with the check are available and will be paid. This is a vast improvement over a check written by some other party, where there is typically some probability of the check bouncing due to insufficient funds in the payer’s account. This is an especially important issue with the payee suspects that the payer is not financially stable.