Cashing Third Party Checks (Everything to Know)

Third Party Checks Cashing


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Are you in search of the best place for cashing third-party checks? With more than two parties involved, it can be much more complicated than cashing a check that was paid to you directly.

Because the original recipient signed over the check to a third party, there’s an increased risk of fraudulent activity.

As a result, financial institutions and check cashing stores will require much more information from you. To cash a third-party check, you will need the original payee to endorse the check by signing the back and Pay to the Order of ‘your name.’

Cashing the third-party check may also require photo identification and both parties to be present.

That said, please continue reading to find out how to cash a third-party check, where to do it, and the answers to frequently asked questions.

We’ll also discuss how to correctly endorse a third-party check and what you need to cash one, such as ID.

How to Endorse a Third Party Check

To endorse a third-party check, you must sign it over to another individual.

To do so, on the first line, you need to write “pay to the order of ‘name of the individual'” you’re signing it over to instead of signing it as you would if you were cashing the check yourself.

The third-party can be a business or person you’re endorsing the check over to.

You, as the original payee, will then need to sign the back of the check on the second line, followed by the third-party signing their name on the third line.

Once these three steps are completed, the third-party check is officially endorsed.

With that said, the best practice is always to endorse a third-party check in front of bank or credit union personnel, like a teller or cashier. This way, they can act as a witness to your signature.

Here’s a video by Helpful DIY explaining the process of endorsing a third-party check:

What Do I Need to Cash a Third Party Check?

Because third-party checks create an increased risk of fraud and theft, banks, credit unions, and check cashing stores have strict requirements and conditions for cashing them.

This is not only to protect them but also to protect all parties involved. In fact, not all check cashing stores (and even some financial institutions) offer third-party check cashing services.

With that said, here are the two things required to cash a third-party check:

Endorsement

A third-party check must be properly endorsed to be accepted and cashed. Endorsing a check involves both parties signing the back of the check where it reads “Endorse Check Here.”

Depending on where you cash the third-party check, you may be required to endorse it in front of their personnel. However, it’s best practice to do so regardless.

Photo ID

To cash a third-party check, you will also need to provide government-issued photo identification, such as your driver’s license.

In fact, some places may even require you to provide a second form of identification, like a passport, military ID, or any other government-issued identification.

Some places may also contact the original payee for a guarantee or confirmation. They may even require both parties to be present to provide in-person verification.

However, if you cash a third-party check at a bank or credit union you’re a member of, you may be able to bypass the second-party verification part of this step.

Note: Because policies and requirements vary from place to place, you should call ahead of time to ask about their policy.

What Is the Easiest Way to Cash a Third Party Check?

The easiest way to cash a third-party check is to visit a bank such as Chase, a credit union like Navy Federal, or a check cashing store that offers third-party check cashing services.

While many banks and credit unions will cash a third-party check, not all check cashing stores will. Considering this, you should call ahead to confirm they do before visiting one.

With that said, customer service centers at convenience and grocery stores like Costco do not cash third-party checks. You’re also unlikely to cash a third-party check at an ATM or online.

Now that you know the easiest way to cash a third-party check, let’s discuss banks, credit unions and check cashing stores that accept them.

Banks That Cash Third Party Checks

Generally speaking, banks (and credit unions) are the best way to cash a third-party check, especially one you’re a member of. As a customer, your bank should be happy to help you for free.

However, banks’ policies can vary from location to location. Banks are not obligated by law to accept third-party checks, and it is often up to the discretion of the branch manager.

Considering this, you may want to call ahead to verify that your bank will cash third-party checks at the specific location you visit.

On the other hand, if you cash a third-party check at a bank you’re not a customer of, you will most likely be charged a fee.

With that said, here are several banks that cash third-party checks and the fee they charge:

  • Bank of America: $8 fee for checks exceeding $50 (non-customers)
  • Chase: also an $8 fee for checks exceeding $50 (non-customers)
  • Citibank: varies; none for Citibank checks up to $5,000
  • First National Bank: $5 fee (non-customers)
  • HSBC: $3 fee for business check up to $100, then $5 fee (non-customers); none for personal checks
  • M&T Bank: 2% fee with a $3 minimum (non-customers)
  • TD Bank: $7 fee (non-customers)
  • Truist: $7 fee for checks exceeding $50 (non-customers)
  • US Bank: $7 fee; only US Bank checks (non-customers)

Credit Unions That Cash Third Party Checks

Happen to be a member of a credit union? Like banks, many credit unions will cash third-party checks for members and non-members.

Here are a few examples:

  • Chartway Federal Credit Union: none; only Chartway Federal Credit union checks for non-customers
  • Connexus Credit Union: none (only customers can cash checks)
  • Navy Federal Credit Union: none

Check Cashing Stores That Cash Third Party Checks

Aside from banks and credit unions, some check cashing stores will cash many checks, including third-party checks.

However, unlike some banks and credit unions, check cashing stores always charge a fee. The fee varies from store to store, by the type of check and the amount.

The advantage of using a check cashing store is that they are typically open longer than banks and credit unions are. This makes them a great option if you need to cash a third-party check after work, for example.

Third party check cashing places near me:

  • Ace Cash Express: varies from location to location
  • Advance Financial: between 1% and 10% fee depending on check type
  • Check N’ Go: starts at a $2 fee
  • Speedy Cash: also starts at a $2 fee
  • The Check Cashing Store: varies from location to location

Places That Do Not Accept Third Party Checks

Because third-party checks involve a lot more risk than two-party checks, many places do not offer third-party check cashing services, such as some banks and credit unions, some check cashing stores, and all convenience and grocery stores.

Note: Although the banks and credit unions listed below don’t cash third-party checks, some may allow you to deposit them into your bank account in person.

  • Some banks and credit unions: Allied Federal Credit Union, Ally Bank, Bank of the West, Charles Schwab, Citizens Bank, Discover Bank, Discover Bank, Fifth Third Bank, KeyBank, PenFed Credit Union, Regions Bank, Wells Fargo
  • Some check cashing stores: Check Into Cash, Community Financial Services Center (CFSC), Friendly Check Cashing, Money Mart, Mr. Payroll, Pay-O-Matic, PLS Check Cashing, United Check Cashing
  • All convenience and grocery stores

Frequently Asked Questions

Here are a few frequently asked questions about cashing third-party checks:

How Do You Cash a Third Party Check Without the Other Person?

You cash a third-party check without the other person as you would if they were present.

The third-party check must be endorsed properly, and you will need to provide government-issued photo identification, such as your driver’s license.

To cash the third-party check without the other person, you will also have to cash it at a financial institution with which you have a relationship. This way, they may not require the other person to be present.

If your bank or credit union does require both parties to be present, then it’s unlikely you will be able to cash the third-party check without the other person.

However, you could attempt to cash it at a check cashing store instead. There’s just no guarantee it will be accepted without the other person present.

Can I Cash a Third Party Check Without a Bank Account?

Yes, you can cash a third-party check without a bank account. However, it’s not as convenient, and you will need to pay a fee. You will also most likely need to cash it at the bank in which it was issued.

For instance, if Chase Bank issued the check, cash it at a local Chase Bank branch. Once there, the teller will pull the account, verify it has sufficient funds, and then issue you the cash.

If this isn’t an option, your second best bet is to take it to a check cashing store that offers third-party check cashing services, such as Ace Cash Express or Check N’ Go.

Remember, just like you would if you had a bank account, you will still need valid identification to cash a third-party check without one. As previously mentioned, you may even need a second form of ID.

That said, you should probably just save yourself some time and money by opening a bank account. For instance, if you cash a check worth $1,000 and avoid paying a 10% fee by opening a bank account, you’ll save $100!

If you’re constantly cashing third-party checks, that can add up quickly.

Can You Cash a Third Party Check at an ATM?

Although ATMs are quick and efficient for most deposits and withdrawals, you should not use them to cash a third-party check. The automated nature of ATMs is not sufficient for handling the process of verifying a third-party check.

Instead, you should prepare a deposit slip and cash the check with the help of a teller.

If you try to cash a third-party check using an ATM, it will most likely be returned, and you may be charged a service fee.

Where Can I Cash a Third-Party Check Online?

Because third-party checks entail increased scrutinization to prevent fraudulent activity, financial institutions do not allow them to be cashed online.

To cash a third-party check, you must visit a bank, credit union, or check cashing store in person.

Does Ace Cash Third Party Checks?

Yes, Ace Cash Express does offer third-party check cashing services. However, the fee they charge varies by location.

You can learn more about cashing a third-party check at Ace Cash Express on their website here.

Does Walmart Cash Third Party Checks?

Like other grocery stores, Walmart will not cash third-party checks at its Money Center departments. However, Walmart and other grocery stores do offer cashing services.

According to its website, Walmart cashes pre-printed, payroll, government, tax, cashiers, insurance settlement, 401(k), retirement disbursement, MoneyGram money orders, and two-party personal checks.

All checks are limited to $5,000 ($7,500 from January to April). However, two-party checks are limited to $200.

You can learn more about cashing services offered by Walmart here.

Final Thoughts on Cashing Third Party Checks

Many banks, credit unions, and some check cashing stores offer third-party check cashing services. However, each place does have its own policies, requirements, and fees.

On the other hand, places like grocery stores, convenience stores, and gas stations do not cash third-party checks.

With that said, if you’re trying to avoid fees, you should cash the third-party check at a bank or credit union you’re a customer of. Most banks and credit unions typically offer free check cashing services for account holders.

If you don’t mind paying a fee and just want convenience, you may want to use a check cashing store instead. Check cashing stores are usually open longer than banks and credit unions.

This makes them a great option if you don’t have time to visit your bank during the day and need to cash a third-party check after work.

Regardless of the option you choose, always call ahead of time to verify they accept third-party checks. Also, ensure the check is properly endorsed and that you bring government-issued photo identification.

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