Can You Deposit Someone Else’s Check-In Your Account?

It is possible to deposit someone else’s check in your account. However, depositing someone else’s check in your account requires some extra work. The check must be endorsed by the owner in your name. The owner has to write “Pay to (receiver’s full name)” and then sign it on the back of the check.

Key Takeaways

• Almost all the USA banks including Wells Fargo, Chase, Bank of America, TD Bank, and other big banks accept 3rd party/endorsed checks
• Without the endorsement, you won’t be able to deposit someone else’s check in your account
• The check must have a “For Deposit Only” mark or the bank won’t accept the check
• You won’t able to deposit a government check in a bank account if the payee or you don’t have an account in the bank
• Depending on the bank, the payee might have to be present at the time of depositing a 3rd party check

Depositing Someone Else’s Check – It’s Possible, With Caution

It is legally possible to deposit a third-party cheque but it won’t always work. There are some rules that you have to follow before you can deposit someone else’s check in your account. Most of the leading banks in the USA including Wells Fargo, Chase, Bank of America, TD Bank, and other banks, accept third-party cheque deposits. However, all of these banks have different policies about depositing a third-party cheque. If you want to deposit someone else’s check then the check must have a “For Deposit Only” mark on it. Moreover, the owner of the check or the payee also has to endorse the check-in your favor. If the check is not endorsed by your name then the bank won’t accept the check. Moreover, there are several factors that come into play and it is totally up to the banks whether they will accept or reject the check.

Depositing Endorsed Checks

As I said before most of the banks will accept an endorsed check but they might only do it under the following conditions – 

1. You might not receive the fund as soon as you deposit the check because the bank can hold your funds until the check is cleared by the bank that issued the check.

2. You won’t able to deposit a government check in your account if you or the payee is not a customer of that bank.

3. There are some banks that only accept third-party cheques that are jointly made out of two individuals where one of them endorses the check while the other person deposits the check.

4. Some banks only accept third-party cheques if the payee is present during the deposit. Moreover, the bank will also check the ID of the payee to verify his/her identity.

What Is The Process Involved With A Third-Party Cheque?

When you deposit someone else’s check on your account it will undergo a certain process before the funds are credited to your account. Let’s check the process below – 

1. When you deposit someone else’s check the bank first receive the check

2. Then a bank officer will separate the checks according to the banks that issued the checks

3. After the end of bank hours, your bank will send the check to the issuing bank to request payment for the amount posted on the check

4. After receiving the check, the issuing bank will check and verify if the is authentic and not fake

5. The bank will investigate if the check was written and issued by the person who has the authority to write a check

6. Then the bank will check if the account of the check holder has sufficient money to cover the amount indicated on the check

7. If everything is ok then the check issuing bank will transfer the funds to the bank where your account is

8. If there is any problem then the check issuing bank will reject your bank’s request to pay the amount of the check

9. This process will take several days or even a week to check and transfer the funds to your account                       

Cost To Cash A Third-Party Check At Top 10 Banks In The USA

Bank	Cost To Cash A Check As A Non-Customer
Bank of America	$6
Chase	$6
Wells Fargo	$7.50
Citibank	Free for checks under $5,000
U.S. Bank	$5
Capital One	Free
PNC Bank	$10
SunTrust	A personal check is free; the business check is $7
TD Bank	$7
BB&T	Free under $50; Over $50 a fee of $8

How To Endorse A Check Over To Someone Else

If you have a payable check but you don’t want to deposit it on your account then you can endorse the check over to someone else. When you endorse the check to someone else then it is considered as a third-part check. Here are the steps to sign over a check to a third party:

1. First, you have to decide who you’d like to sign your check over to. This could be a person, group of people or a company. Depositing a third-party check is tricky so you have to carefully endorse the check.

2. Before endorsing the check make sure the person or organization will accept a signed-over check.

3. If the person or company agrees to accept a signed-over check then you have to check and ensure that the person’s or organization’s bank will accept the check. You must confirm it before endorsing the check to avoid confusion with multiple signatures.

4. If everything is checked and ok then you should sign the back of the check that reads “Endorse Check Here.” Here you have to sign your name as it appears on the front of the check.

5. After that, you have to write the name of the person that you are signing the check over. You have to write the name in the endorsement area under your signature. It will tell the bank that you are endorsing the transfer of ownership for the check.

6. Once you have endorsed the check then it is ready to be deposited by your designated third party.

FAQs About Can You Deposit Someone Else’s Check In Your Account?

References:

1. https://www.gtfcu.org/articles/how-to-endorse-deposit-someone-elses-check
2. https://www.thebalance.com/instructions-and-problems-with-signing-a-check-over-315318

Last Updated on October 1, 2022 by Magalie D.