It is of no doubt that most checks you will see out there only involves two parties. So, the check is made payable from one person or business to another person or business. Or in simple terms, a check is made payable from person A to person B.
With a third party check, the original payee signs over the check to a third person, and this allows the third party to cash the cash without any issue.
Meaning that person B receives a check from person A, and person B signs the check over to person C.
For a third party check to be created, the original payee will need to write the following in the endorsement space below their signature:
"Pay to the order of (insert name of new payee)"
This method simply turns the check into a brand new check for another person.
Since you will also need to sign the check as well, the original payee needs to leave enough room for you to sign the endorsement area too.
Since third-party checks come with increased-risk of fraud, many places are reluctant to cash or deposit them. So, if you have this type of check, you might be wondering where to cash it.
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What is a Third Party Check?
A third party check in a simple words is a check that is drawn on a bank account that is not owned by the person who wrote the check. Like for example, if John writes a check to Mary, and the check is drawn on Jane's bank account, then the check is a third party check.
Third party checks are often used in business transactions, when a company does not have its own checking account. For example, a company may issue a third party check to a vendor, even though the check is drawn on the company's owner's personal bank account.
You can also decide to make use of third party checks for personal reasons.
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Where Can I Cash a Third Party Check?
Several banks such as Citibank, Bank of America, and US Bank will cash third-party checks, and you will only pay a fee if you are not an account holder. You are also able to cash third party checks at some credit unions, like the navy Federal Credit Union. Some check cashing stores like ACE Cash Express, Advance Financial and Speedy Cash also cash checks. However, unlike banks that provide the services free of charge, check cashing stores tend to charge a fee for this.
Banks That Cash Third-Party Checks
There are a few banks that cash third party checks buy the simple truth is that the policy may vary from one branch to another. This is main reason why it is necessary you call ahead and ask your local branch whether they accept third-party checks at that specific location.
In case you are in search of ways to cash a check for free, then the bank where you are an account holder in is your favorite option.
Below are some banks that might cash your third-party checks.
1. Citibank
Citibank counts more than 2,300 ATMs in over 600 branches in the US. and 60,000 other surcharge free ATMS in its network.
It cashes several types of checks like government checks and cashier's checks.
Certain third-party checks can be cashed at Citibank, although there are restrictions.
Only checks drawn on Citibank may be cashed by non-customers.
Checks can only be cashed by Citibank account holders up to the available checking account amount. Thus, the remaining balance may be deposited if the checking amount exceeds the balance.
The original payee may be asked by Citibank to confirm or attest to their endorsement.
There are no costs if you are a Citibank customer. Third-party checks written on Citibank may be cashed by non-account holders for a maximum of $5,000.
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2. U.S Bank
Here is another location where you can cash third-party checks. U.S Bank customers can cash or deposit third-party checks in person at a branch. Non customers can only cash third-party checks drawn on U.S Bank.
As a non customer, you will encounter a $7 fee. U.S bank lets you cash personal checks and other types of checks as well.
3. Chase
Chase is another place you can try if you have a third-party check.
Non-customers can only cash third-party checks drawn on Chase. The fee is $8 on checks over $50 if you aren’t a Chase customer.
4. HSBC
Only personal and commercial checks issued on HSBC may be cashed by non-account holders.
Cashing personal checks is free. Non-account holders will pay a fee of $5 for larger checks and a cost of $100 for checks up to $100 in order to cash business checks.
5. Bank of America
Certain Bank of America branches will cash checks from third parties.
Third-party check cashing and deposit, however, is done on a case-by-case basis. Therefore, the manager at each Bank of America office has the last say over approval. A third-party check can only be deposited in the presence of both parties.
Find out if the employees at your neighborhood branch will cash your check.
Customers with Bank of America accounts can cash cheques from other parties for free.
Checks exceeding $50 will incur a $8 fee if you are not a customer.
6. TD Bank
Sometimes TD Bank may cash checks from third parties. Similar to some other banks on the list, the processing of third-party check cashing is done on an individual basis. To find out if your local bank will cash your third-party check, contact them.
For non-customers, there is a $7 cost each check.
7. Truist (Fomerly SunTrust Bank and BB&T)
SunTrust Bank and BB&T are now called Truist. You can cash third-party checks at Truist, but, again, there are requirements. You will need to pay a fee on checks over $50 if you’re not an account holder.
8. M&T Bank
You can cash checks made out to third parties at M&T Bank. Non customers are only able to cash third-party checks that are drawn on M&T
Non-customers are charged a fee equal to 2% of the entire check amount. The lowest cost is $3, and the highest fee is $20.
The cheque cannot be cashed unless the original payee and the third party are present for an in-person verification.
9. First National Bank of Omaha
First National Bank of Omaha will cash third-party checks in some cases. Third-party check cashing is handled on a case-by-case basis, as it is with some of the other banks on the list. Get in touch with your local branch to ask if they will cash your specific third-party check. There’s a $5 fee per check for non-customers.
Credit Unions That Cash Third-Party Checks
Aside from banks, there are several credit unions that will cash third party checks. Similar to banks, you will need to provide an ID in order to cash or deposit the check. In a select locations, the original payee as well as the new payee will need to be present.
1. Navy Federal Credit Union
Checks from third parties will be cashed by the Navy Federal Credit Union. However, there are prerequisites. Third-party checks must be signed by members in front of a teller.
For non-members, only checks drawn on NFCU are accepted. Third-party checks written on NFCU may be cashed by non-members provided that both parties are present for in-person verification.
Both members and non-members of Navy Federal Credit Union are eligible for free check cashing.
2. Connexus Credit Union
Connexus Credit Union provides check cashing services, but only to Connexus members. This means that non-members cannot cash a check at Connexus Credit Union.
The third-party needs to endorse the check in the presence of bank personnel.
It’s free to cash a third-party check at the Connexus Credit Union.
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Final Thoughts: Cashing a Third Party Check
As you can see, cashing a third-party check is available in a lot of locations.
Third-party checks can be cashed by a large number of banks, credit unions, and check cashing businesses.
As long as you are a customer of that specific bank, the bank is your best bet if you want to avoid costs. Banks typically provide free check cashing to customers who have accounts.
If convenience is what you're looking for, check cashing locations can be a fantastic option because they typically stay open later than banks, making them a viable option if you find it difficult to visit your bank during regular business hours.