If a check is written by a person or an organization to another person and then the check is given to a third person to deposit in his/her account then this type of check is called a third-party cheque. There are many banks in the USA that allows a person to deposit someone else’s check (third-party cheque) to their account. In this type of situation, the owner of the check must endorse the check to the 3rd person. They have to write “Pay to (receiver’s full name)” and then sign it on the back of the check. If everything is done properly then a bank doesn’t have any legal obligation to accept an endorsed check.
Jump To A Section
- 1 Depositing Someone Else’s Check – It’s Possible, With Caution
- 2 Depositing Endorsed Checks
- 3 What Is The Process Involved With A Third-Party Cheque?
- 4 Cost To Cash A Third-Party Check At Top 10 Banks In The USA
- 5 How To Endorse A Check Over To Someone Else
- 6 FAQs About Can You Deposit Someone Else’s Check In Your Account?
- 6.1 1. Can You Mobile Deposit Someone Else’s Check In Your Account?
- 6.2 2. Can You Deposit A Check Without A Signature?
- 6.3 3. Can I Deposit A Check Signed Over To Me Online?
- 6.4 4. Can You Deposit Someone Else’s Check-In Your Account In Bank Of America?
- 6.5 5. Is It Illegal To Cash Someone Else’s Check?
- 6.6 6. What Happens If You Deposit A Check That Is Not Signed?
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|
|Citibank||Free for checks under $5,000|
|SunTrust||A personal check is free; the business check is $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?
1. Can You Mobile Deposit Someone Else’s Check In Your Account?
Yes, you can mobile deposit someone else’s check-in your account if the payee endorses the check with “for mobile deposit only.” It will allow you to deposit the check remotely with a mobile banking app.
2. Can You Deposit A Check Without A Signature?
There are many banks that allow depositing a check without a signature, account number, or anything else on the back. This is a great way to keep your private information safe. However, you can still write “for deposit only” in the endorsement area for extra security.
3. Can I Deposit A Check Signed Over To Me Online?
Well, the answer to this question depends on the bank authority where is your account is. There are many banks that allow depositing endorsed checks online while other banks don’t allow it. Many banks consider a third-party check a red flag, therefore; they refuse to deposit or cash these checks.
4. Can You Deposit Someone Else’s Check-In Your Account In Bank Of America?
Yes, you can deposit someone else’s check-in your account in Bank of America. Bank of America allows third-party checks as long as they are endorsed properly.
5. Is It Illegal To Cash Someone Else’s Check?
If the check is not endorsed to you then it is illegal to cash someone else’s check. So cashing someone else’s check is a forged instrument and it is also a felony in all states and carries a prison term.
6. What Happens If You Deposit A Check That Is Not Signed?
If you deposit a check that is not signed then the bank will send the check back to the issuer. Moreover, it will result in fees and delays in getting your money. Many banks will reject the check if it is not signed by the issuer.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.