When a purchaser of a bank check, i.e., cashier's check, does not give the check to the payee, the purchaser can return the check to the bank to "void" it. I don't recall the exact language that should be placed on the check with the purchaser's endorsement. I think something like "Cashed by purchaser, not used for purpose intended" followed by the purchaser's signature is appropriate.

Can anyone tell me how you handle this situation? Do you require a new check payable to the purchaser or will you deposit money to their account or give cash out? Are there any times you won't allow the purchaser to do this? Is there any documentation you require prior to allowing this?

Thanks

We have always had the purchaser write 'not used for purpose intended' and endorse it, then deposit it into their account.
We don't sell monetary instruments to non-customers...

MadisonCali's method is the one I am familiar with, but I do not think it makes a difference whether the item is deposited or cashed by the purchaser. This procedure is more a matter of banking custom than an attempt to adhere to the dictates of law or regulation. The fact that there is relative uniformity in the processes used by many banks is somewhat amazing.

I'd discourage any attempt to cash such an unused check if it was bought by a business. In such a case, it should be deposited intact back into the business's account.