A third-party check is a form of a bill written by someone to another person and then delivered to a third person. Checks deposited by third parties must be endorsed on the back. You write “Pay to (receiver’s complete name)” and sign it on the back. If done correctly, banks are not legally obligated to accept endorsed checks.
With Caution, you can deposit someone else’s check
It is legal to deposit a third-party check. But sometimes, it does not work. The bank’s rules must also be followed. In certain institutions, third-party checks may be deposited into your account. These include Wells Fargo and Chase, and others too! But each bank has different rules about what they will accept in their account.
“For Deposit Only” should be written on the check. In addition, the person who wrote the review and you both need to sign it. Without your signature, the bank will not accept the check. A bank considers several factors before accepting or rejecting a cheque.
Depositing Endorsed Checks
If you meet the following requirements, banks will let you use an endorsed check:
- After depositing the check, you may not be able to access your money immediately because of this. It must first be approved by the bank before it may be used.
- If you or the person receiving the money are not clients of the bank, they will not be able to deposit a government check.
- A third-party cheque is written to two people who will do different things with it. One person approves the check, and the other deposits it.
- If you want your statement to be deposited, you must go to the bank. The bank will verify your identity by checking your ID.
What Happens When a Third-Party Cheque Is Issued?
It takes some time before the money from a cheque is added to your account. Steps must be taken at the beginning.
- Depositing someone else’s check involves some steps that you should remember. You must verify that the check was written by the individual who really received the money. Another is that if they give you a date, be sure not to deposit it before then or after.
- Bank officers sort out checks in a second step.
- When you give your bank money, they might put it in the bank for you. When the check arrives, they will take it to another bank and ask for money.
- After you get the money, the bank that gave it to you will check if the cheque is actual.
- A bank will examine a check when someone writes one. If an authorized signatory writes the bill, they will investigate why.
- Banks examine the check writer’s account to determine if enough money is available.
- If everything goes well, the bank that issued the check will wire the money to the account you have.
- Your bank won’t pay the check amount if there is an issue with the bank that issued it.
- When you buy something, it may take a few days for the money to come to your account.
How Much It Costs To Deposit A Third-Party Check At The Top 10 US Banks
| Bank | Non-Check Customer’s at Bank of America |
| The Bank of the United States | Six dollars |
| Chase | Six dollars |
| Wells Fargo | 7.50 dollars |
| Citibank | Checks under $5,000 are free |
| U.S. Bank | Five dollars |
| Capital One | Free |
| PNC Bank | Ten dollars |
| SunTrust | It costs $7 for a business check and fee for a personal check |
| TD Bank | Seven dollars |
| BB&T | A fee of $8 for amounts over $50; free under $50 |
How To Endorse A Check Over To Someone Else
If you want to avoid paying a check made out to you, the person who has the check should endorse it. They can do this by signing their name on the back of the paper. This is called a third-party check. To transfer a check from one person to another, these are the steps:
- To start, you need to know who should get the money. You might hand it over to one person, a team, or a business. If you have a third-party check, make sure you endorse it correctly.
- The bank needs to know that the person signing the check has agreed to transfer their money.
- You need to ask them to be sure that the bank will take a check that someone else has signed. The person needs to sign the check just once, and then it can be written by other people.
- If everything is okay on the check, you should sign it. You must sign your name precisely as it appears on the check’s front.
- When you sign off on the cheque, make sure to put their name in the fifth and final section. You will need a signature from them for this. Put your signature somewhere else, showing that you agree with this change of ownership.
- Once you sign the check, the person who you choose can put it in their bank account.
Frequently Asked Questions about Depositing a Check from a Third Party
In the first place, is it possible to deposit a check from someone else into your account using a mobile device?
Yes, if the person who wrote the check signs it “for mobile deposit only,” you can deposit that into your account. You can use a banking app to do that.
What if You Don’t Have a Signature?
Checks may be deposited without a signature at the majority of institutions. It is better because it protects your personal information. But if you want, you can add “for deposit only” to the back of the check.
How Do I Deposit a Check Personally Signed for Me?
Depending on the bank, the answer to this inquiry might vary. Some banks allow endorsed checks, while others do not. A third-party review is a red flag for many banks, so they can’t be deposited or cashed.
Is it possible to deposit a cheque from a third party into your Bank of America account?
You may deposit checks from others into your Bank of America account. If you double-checked that the cheque was endorsed appropriately, that would be helpful.
To cash someone else’s check is against the law.
To cash someone else’s cheque without their permission is wrong. It is a crime in every state, which means that the cheque is inaccurate.
Does It Count As A Crime If You Cash Another Person’s Check?
If you deposit a not-signed check, the bank will return it. You’ll also have to pay fees and wait longer for your money. If the issuer doesn’t sign the bill, it won’t clear the bank’s system.
