How To Cash A Two-Party Check (Without The Other Person, With One Signature, Online, etc.)

You can easily cash a two-party check without the other person or with one signature if the payee’s name is written in the check by “or.” However, if the name of both parties is written with “and” on the check then you won’t be able to cash the check by yourself. In this type of situation, the bank or financial institute demands endorsement from both payees.

Key Takeaways

• Usually, a two-party check contains the name of two payees
• If the name of both payees are written with “or” then you can easily cash the check with one signature or without the other payee
• If the name of both payees are written with “and” then you won’t be able to cash the check with one signature or without the other payee
• Depending on the bank or financial institutes, it might require two signatures or the presence of both payees regardless of the “and”, or “or” on the check

What Is A Two-party Check?

Two-party checks are issued for two payees. This type of check is very common as wedding presents and IRS payments for a joint filing. Moreover, you might receive a two-party check if you are running a joint business with another person. Usually, the “Pay-To-The-Order-Of” line of a two-party check is filled with the name of “Person A and Person B” or “Person A or Person B.” The word “and” and “or” makes a huge difference in how you can cash a two-party check, so you should understand the differences to avoid problem while cashing the check.

What Is The Difference Between “And” And “Or” On Two-Party Checks?

The way a check is written plays a very important role in how you deposit or cash a check written to multiple payees. If the check specified that the funds are paid to either party by using “or” then either one of the payees can cash the check. However, if the check specified that the funds are paid to both parties by using “and” then the process becomes more complicated and both the payees have to endorse the check. Moreover, many banks require that both parties have to visit the bank branch and verify their signature with a valid photo ID. If you want to deposit the check then it becomes more difficult if the check is written using “and.” In this type of situation both the payees must have a joint bank account to deposit the two-party check.

How To Cash A Two-Party Check When Both Payees Present

If you and the other payee are physically present then you can easily cash a two-party check. Below are the details – 

1. First, you have to search for the nearest bank branch where you can cash two-party checks. You should know that not all bank branches or financial institutes allow cash procedures because of the fraudulent risks.

2. There is a cash limit for checks in every bank so if you have a large check then you have to contact the bank authority first or you have to find a bank that doesn’t have a cash limit for two-part checks.

3. You have to pay a fee to cash a two-party check and depending on the check’s face value the fee can vary from 1% to 12%.

4. If both the payees’ names are written with “and” then its a mandatory that both the payees have to present in the bank to cash the check.

5. Both the payees have to provide valid photo IDs and verify their signatures before the bank could cash the check.

6. You have to submit the check with an ID card and other required documents (depending on the bank) to the cashier.

7. If everything is ok then pay the required fee at the counter to complete the process.

How to Cash a Two-Party Check Without The Other Person   

You can only be able to cash a two-party check without the other person if the check is written where the “Pay-To-The-Order-Of” line is filled with the name of “Person A or Person B.” It means, if there is a “or” between the two names of the payees then you can cash the check without the other person. The use of “or” gives any of the payees the authority to cash the check without the other payee or the signature of the other payee. Now follow the steps – 

1. First, you have to visit the nearest bank branch where you can cash the check

2. Talk with the bank authority about the cash limit of the check and see if your check meets the limit

3. Now endorse the check on the back and submit it to the cashier with an ID card and other required documents (depends on the bank)

4. Finally, pay the required fee at the counter to complete the process

If you cash the check then you will receive the money in hand but if you deposit the check then it will take 2-3 business days before the fund will add to your account.

How To Cash A Two-Party Check With Only One Signature

You can cash a two-party check with only one signature if there is a name of the payee with “or.” You must understand that if there is a name of the payee with “and” then it will require a signature from both the payees. In this type of situation, the check cashing departments and the banks forces both parties to endorse the check. So check the two-party check and if you see “or” between the name of two payees then follow the below steps – 

1. Take the check to the nearest bank branch that allows two-part checks

2. Check the cash limit of the bank and see if your check meets the requirements

3. Then submit the check to a cashier, the cashier will examine the check and ask you to endorse the check

4. Now endorse the check on the back with your valid signature and handover the check to the cashier

5. Submit your valid photo ID and other required documents

6. The cashier will verify your signature and the documents and if everything is ok then the cashier will ask you to pay the fee

7. Pay the required fee to complete the process

How To Cash A Two-Party Check Online

Cashing a two-party check is complicated therefore banks and other financial institutes don’t allow cashing a two-party check online. Usually, a two-part check requires more scrutinization and verification to protect against fraudulent activity. So it is best for both the bank and payee to cash a two-party check in person at a bank or credit union.

Major USA Bank Rules For Two-Party Check-Cashing/Depositing

Name of the Bank	Rules for Two-Party Check-cashing/depositing
Bank of America	For tax refund checks, all payees must also be joint owners of the account
Ally Bank	For tax refund checks, all payees must also be joint owners of the account
Chase	Both payees need to be presented and provide a valid government ID to verify the signature
Wells Fargo	Both payees need to be presented and provide a valid government ID to verify the signature
City Bank	Check should be endorsed by both payees
Capital One 360	Check should be endorsed by both payees
TD Bank	For tax refund checks, all payees must also be joint owners of the account
BB&T	For all checks, all payees must also be joint owners of the account

The Law Of Identification Of A Person To Whom Check Is Payable

According to section 3-110 of the Uniform Commercial Code – 

(a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or on behalf of the issuer of an instrument and all the signers do not intend the same person as the payee, the instrument is payable to any person intended by one or more of the signers.

(b) If the signature of the issuer of an instrument is made by automated means, such as a check-writing machine, the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee, whether or not authorized to do so.

(c) A person to whom an instrument is payable may be identified in any way, including by name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply:

(1) If an instrument is payable to an account and the account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number.

(2) If an instrument is payable to:

(i) a trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;

(ii) a person described as an agent or similar representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative;

(iii) a fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or

(iv) an office or to a person described as holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent.

(d) If an instrument is payable to two or more persons alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.

FAQs About Two-Party Checks

References:

1. https://www.mybanktracker.com/news/deposit-check-written-payees
2. https://bestfinancier.com/how-to-cash-a-two-party-check-without-the-other-person/

Last Updated on October 27, 2022 by Magalie D.