Most banks no longer accept third party checks, but some still do under strict conditions
A third party check is a check written to you that you then sign over to someone else to cash or deposit. Most major banks—including Chase, Bank of America, Wells Fargo, and Citibank—stopped accepting them years ago because of fraud risk. Some regional banks and credit unions still take them, but they require the original payee (the person the check was written to) to be present with a valid ID, and they often limit the amount or charge a fee.
If you need to deposit a check made out to someone else, your best options are a credit union, a smaller regional bank, or a check-cashing service. The rules vary widely by institution and by state, so you will need to call ahead or visit in person before you show up with the check.
Key Takeaways
- Chase, Bank of America, Wells Fargo, and most other major banks do not accept third party checks under any circumstances.
- Some credit unions and regional banks will cash or deposit a third party check if the original payee is present with a government-issued ID.
- Check-cashing services and payday lenders often accept third party checks but charge a percentage fee, usually 1 to 5 percent of the check amount.
- The safest way to transfer money from one person to another is to have the original payee deposit the check in their own account and then send you the funds directly.
Why banks stopped taking third party checks
Banks began rejecting third party checks in the 2000s after fraud losses mounted. A third party check creates a chain of endorsement—the original payee signs it over to you, you sign it over to the bank—and each link in that chain is a place where forgery or theft can happen. The bank has no way to verify that the middle person actually owned the check or had permission to pass it along.
Federal banking regulations do not forbid third party checks, but they allow banks to refuse them. Most large banks decided the liability and processing cost were not worth the small number of legitimate transactions, so they wrote policies that reject them outright. Smaller institutions and credit unions have kept the option open because they often know their members personally and can verify identity more easily.
Credit unions and regional banks that may accept them
Credit unions are more likely to accept third party checks than national banks, especially if both the original payee and the depositor are members. Call your credit union's main branch and ask whether they take third party checks, what ID they need, and whether there are limits on the amount.
Regional and community banks vary. Some accept third party checks with both parties present and valid ID; others refuse them entirely. Banks in rural areas are more likely to take them than banks in cities. The only way to know is to call the specific branch where you want to deposit the check and ask their policy.
If you do find a bank that accepts third party checks, expect to show:
- The original check, signed by the person who wrote it and endorsed by the person it was written to.
- Your own signature as the second endorsee.
- A government-issued ID for the original payee (the person the check was written to).
- A government-issued ID for you (the person depositing it).
Check-cashing services and their fees
Check-cashing stores, payday lenders, and some grocery stores will cash third party checks without requiring the original payee to be present. They charge a fee—typically 1 to 5 percent of the check amount, depending on the check size and the store's location. A $500 check might cost $10 to $25 to cash.
These services move faster than banks and have fewer restrictions, but the fee adds up if you cash checks regularly. They also may have daily or weekly limits on how much they will cash. Call ahead to confirm they take third party checks and ask what their fee is for the amount you are cashing.
What to do if the bank refuses the check
If you cannot find a bank or credit union that will take the third party check, the simplest solution is to ask the original payee to deposit it in their own account and then send you the money directly. This avoids the endorsement chain entirely and takes only a few days if they use a bank transfer or Venmo.
If the original payee is unwilling or unable to do that, a check-cashing service is your next option. Bring the check, your ID, and the original payee's ID if the service requires it. Have the original payee call ahead to confirm the service will take a third party check without them being present, because policies vary.
If the check is from a business or government agency, you can also contact them and ask whether they can issue a new check in your name instead. Some will do this at no cost if you explain the situation.
State laws and local variations
A few states have laws that require banks to accept third party checks under certain conditions, but most do not. California, for example, does not mandate acceptance, and most California banks still refuse them. Check your state's banking regulations or call your state's banking commissioner's office if you want to know whether your state has rules about third party checks.
Local check-cashing services may have different rules than national chains. A mom-and-pop check-cashing store might accept third party checks with just one ID, while a national chain might require both parties present. Ask before you go.
Frequently Asked Questions
Can I deposit a third party check online or by mail?
No. Banks that accept third party checks require both the original payee and the depositor to appear in person with ID. Remote deposit and mobile check deposit do not work for third party checks because the bank cannot verify the endorsement chain without seeing both people and their IDs.
What if the original payee is deceased?
A check made out to a deceased person cannot be deposited as a third party check. The estate or a court-appointed representative would need to handle it through probate or a similar legal process. Contact the bank that issued the check or a probate attorney for guidance.
Do I need the original payee's permission to deposit their check?
Yes. When the original payee signs the back of the check and writes "Pay to the order of [your name]," they are giving you permission to deposit it. If they refuse to sign it over, you cannot legally deposit it, and attempting to forge their signature is fraud.
Will a check-cashing service accept a third party check if it is damaged or old?
Damaged checks are risky for any service to accept because they are harder to process and verify. Very old checks (usually more than six months) may be refused because the issuer might have stopped payment or the account might be closed. Call ahead and describe the check's condition.
What if the check amount is very large?
Banks and check-cashing services may refuse large third party checks or require additional verification. Some have daily or weekly limits on third party check amounts. Call ahead and ask about limits before you bring the check in.