Are there any issues / risks to the bank if a bank customer writes a counter check to a third party and then the bank converts that check into a cashier's check? If okay, can the counter check be used as the withdrawal and payment to authorization?

What is the different between a counter check and any other check?

None that I am aware. When I say counter check I am referring to a customer written check. The customer writes a check to a third party then brings it to the bank to convert it to a cashier's / official check. Is this sufficient documentation to convert the check to a cashier's / official check?

rlcarey is the expert; but I'd say that once the customer writes the check to a third party, only they should be able to cash that check. If the customer is purchasing a cashier's check, his/her check should be made payable to the bank.

Doug is correct in his analysis. Once the check is written to the third party, they would have to endorse the item to negotiate it.

But the check should not be payable to the bank. Checks payable to the bank should only be for sums due the bank, such as box rent or loan payments. A while back, it would also include checks for deposot of federal taxes. The check for pirchase of a cashier's check should be payable to cash or the individual making the purchase.

We would not allow the customer to "convert" this check to a cashiers check. We would instruct him to void the check to the third party and hand him another blank counter check, which he would make payable to himself and hand to us to purchase the cashiers check. We do not allow checks made payable to the bank unless it is for something they owe the bank (loan payment, safe deposit box rental payment).

Your customer writes a check to John Smith. John Smith presents the item and wants to use it to purchase a cashiers check payable to him?

On proper endorsement: You can do it. You can not do it. The choice is simply yours.

There may be "wrongful dishonor" issues if you refuse to cash an on us check. Regardless, you are not obligated to certify a check, so you are most certainly not required to replace it with a cashiers check.

P.S. If the check is payable to an entity, the options are limited to "You would be foolish to do it."