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Navigating the world of personal finance can often present unique challenges. One such situation is dealing with a third-party check. This is a check that you, the recipient, want to sign over to another person or entity. While this sounds simple, the process is often complicated by bank policies.
Many financial institutions are hesitant to accept these checks due to the increased risk of fraud. This blog post will explore the topic in detail, providing a list of 17 Banks That Accept Third-party Checks (fees, Etc), along with their known policies and associated costs.
Understanding Third-Party Checks
A standard check involves two parties: the payer (the person who writes the check) and the payee (the person or entity the check is made out to). A third-party check introduces a third person into this equation. The original payee endorses the check by signing the back and writing “Pay to the order of” followed by the name of the third person. This third person then becomes the new payee and can attempt to cash or deposit the check.
The primary reason banks are cautious about third-party checks is the heightened risk of fraud. It is more difficult for a bank to verify the legitimacy of the endorsements and the identity of all parties involved. This has led many larger financial institutions to either refuse them outright or to impose strict conditions for their acceptance.
How to Endorse a Third-Party Check
Proper endorsement is crucial for any chance of a bank accepting a third-party check. Here is the standard procedure:
- Original Payee’s Signature: The person to whom the check was originally written must sign the back of the check in the designated endorsement area.
- Special Endorsement: Below their signature, the original payee should write “Pay to the order of [Third Party’s Name].” This legally transfers the check to the new payee.
- Third Party’s Signature: The new payee should then endorse the check below the special endorsement when they go to deposit or cash it.
It is important to note that both parties may be required to be present at the bank and show valid government-issued photo identification.
The Landscape of Third-Party Check Acceptance
Finding a definitive list of banks that accept third-party checks can be difficult. Policies are often not advertised and can change without notice. The decision to accept a third-party check often rests with the individual bank branch and even the specific teller. The relationship the customer has with the bank can also play a significant role. Generally, you will have a better chance of success at a bank where you are an established customer.
Despite the general reluctance, some banks are more open to this practice than others. The following section provides information on the policies of various banks, based on available information. It is crucial to remember that this information can change, and you should always verify with your local branch before attempting to deposit a third-party check.
A Look at 17 Banks That Accept Third-party Checks (fees, Etc)
Here is a list of banks and their general stance on accepting third-party checks. This list includes a mix of large national banks, regional banks, and credit unions.
1. Regions Bank:
Regions Bank is one of the more transparent banks regarding their check-cashing services for non-customers, which includes third-party checks.
- Policy: Regions Bank will cash most types of checks, including two-party and third-party checks, for non-customers.
- Fees: For non-customers, Regions charges a fee based on a percentage of the check amount. This fee can vary, so it is best to inquire at a local branch. For account holders, the fee may be waived or reduced.
- Requirements: Both the original payee and the third party will likely need to be present with valid photo ID.
2. U.S. Bank:
U.S. Bank has a stated policy on third-party checks, but it is primarily for their own customers.
- Policy: U.S. Bank may accept a third-party check for deposit into a U.S. Bank account. The final decision is often left to the discretion of the branch manager.
- Fees: There are typically no specific fees for depositing a third-party check into an existing account, beyond standard account fees.
- Requirements: The check must be properly endorsed by all parties. Both individuals may need to be present with valid identification.
3. PNC Bank:
Based on their mobile deposit agreement, PNC Bank appears to have a restrictive policy on third-party checks.
- Policy: PNC’s mobile deposit service does not accept checks payable to any person other than the account holder. This strongly suggests that their in-person policy is also restrictive. It is unlikely they will accept a third-party check, especially from a non-customer.
- Fees: Not applicable, as they are unlikely to offer the service.
- Requirements: While unlikely to be accepted, if an exception is made, both parties would certainly need to be present with stringent identification.
4. Wells Fargo:
Wells Fargo’s policies, particularly for mobile deposits, suggest a preference for checks payable directly to the account holder.
- Policy: While not explicitly prohibited in all cases, Wells Fargo generally discourages the deposit of third-party checks. Acceptance is highly dependent on the branch and the customer’s banking history.
- Fees: If they do accept the check, there are no specific listed fees for this service for account holders.
- Requirements: Both parties should be prepared to be present at the branch with valid photo IDs.
5. Bank of America:
Bank of America is known for its strict policies regarding checks, including third-party checks.
- Policy: Bank of America explicitly states that third-party checks are not accepted via their mobile deposit service. Their in-branch policy is also known to be very restrictive, and they are unlikely to cash or deposit a third-party check.
- Fees: Not applicable, as the service is generally not provided.
- Requirements: Due to their restrictive policy, it is improbable that they would accept a third-party check under any circumstances.
6. Chase Bank:
Chase, like other large banks, is cautious about third-party checks due to the inherent risks.
- Policy: Chase does not have a clear, publicly stated policy on accepting third-party checks. The decision is typically made at the branch level and may depend on factors such as the check amount and the customer’s relationship with the bank.
- Fees: For account holders, there are generally no specific fees for this service if it is approved.
- Requirements: If a branch agrees to consider a third-party check, both the original payee and the third party will almost certainly need to be present with valid identification.
7. Citibank:
Citibank’s policies are not explicitly stated, but they generally align with other major financial institutions in their cautious approach.
- Policy: Acceptance of third-party checks is not a standard service at Citibank. It would be considered on a case-by-case basis, with a low probability of success, especially for non-customers.
- Fees: No specific fees are listed for this service.
- Requirements: In the rare event of acceptance, both parties would need to visit a branch with proper identification.
8. TD Bank:
TD Bank’s focus on customer service might make them slightly more flexible, but they still prioritize security.
- Policy: TD Bank’s policy is not explicitly stated. As with many other banks, the decision to accept a third-party check is at the discretion of the local branch management. A long-standing relationship with the bank would be beneficial.
- Fees: No specific fees are advertised for this service.
- Requirements: Both parties should be present with valid IDs.
9. Capital One:
Capital One, with its blend of online and physical branches, has policies that can be less straightforward.
- Policy: It is unlikely that Capital One will accept a third-party check, especially through its online and mobile platforms. In-person at a Capital One Café or branch may offer a slim chance, but it is not a guaranteed service.
- Fees: No advertised fees for this service.
- Requirements: If considered, both parties would need to be present with identification.
10. Truist Bank (formerly SunTrust and BB&T):
As a result of a major merger, Truist’s policies may still be evolving.
- Policy: The official policy on third-party checks is not clearly published. Based on the legacy policies of SunTrust and BB&T, which were generally conservative, it is likely that Truist has a restrictive stance.
- Fees: No specific fees are available.
- Requirements: Both parties would need to be present with valid identification if the bank agrees to consider the transaction.
11. Huntington Bank:
Huntington Bank positions itself as a customer-friendly institution, which could translate to more flexibility.
- Policy: While not officially stated, as a regional bank with a focus on community banking, Huntington may be more willing to consider a third-party check for an established customer.
- Fees: No specific fees are listed.
- Requirements: The presence of both the original and new payee with valid IDs would be essential.
12. Fifth Third Bank:
Fifth Third Bank is another large regional bank where policies can be more relationship-based.
- Policy: There is no explicit “yes” or “no” from Fifth Third Bank regarding third-party checks. The decision will likely be made at the branch level.
- Fees: No advertised fees.
- Requirements: Both parties should be prepared to visit a branch together with their IDs.
13. KeyBank:
KeyBank’s approach is likely to be similar to other regional banks, with a focus on risk management.
- Policy: KeyBank does not have a clearly stated policy on accepting third-party checks. The success of such a transaction would depend on the specific circumstances and the discretion of the branch manager.
- Fees: No specific fees are listed.
- Requirements: The presence of both endorsers with valid identification is a probable requirement.
14. M&T Bank:
M&T Bank, with a strong presence in the eastern United States, generally operates with caution.
- Policy: Information on M&T Bank’s policy is not readily available. It is safe to assume they are cautious and that acceptance is not guaranteed.
- Fees: No advertised fees.
- Requirements: Both parties should plan to visit a branch together.
15. Citizens Bank:
Citizens Bank is another institution where the customer’s relationship may influence the outcome.
- Policy: Citizens Bank’s policy is not explicitly stated. The decision to accept a third-party check would be made on a case-by-case basis.
- Fees: No specific fees are listed.
- Requirements: Both individuals should be present with valid photo identification.
16. Navy Federal Credit Union:
Credit unions, being member-owned, can sometimes offer more flexible services to their members.
- Policy: Navy Federal may be willing to accept a third-party check for deposit into a member’s account. However, this is not a guaranteed service and will be subject to their internal policies.
- Fees: Generally, there are no specific fees for this type of deposit for members.
- Requirements: The member and the original payee may both need to be present.
17. Pentagon Federal Credit Union (PenFed):
Similar to Navy Federal, PenFed’s policies may be more accommodating for its members.
- Policy: PenFed may consider accepting a third-party check for a member, but it is not a standard transaction and will be reviewed carefully.
- Fees: No specific fees are typically associated with this for members.
- Requirements: Proper endorsement and the presence of both parties are likely necessary.
This review of 17 Banks That Accept Third-party Checks (fees, Etc) demonstrates the challenging nature of this type of transaction.
Conclusion
The practice of accepting third-party checks is becoming increasingly rare in the banking industry due to the high risk of fraud. While a few banks, like Regions Bank, have more transparent policies, the majority of financial institutions, especially large national banks, are very hesitant to process these transactions.
For consumers, the best course of action is always to contact the bank directly—both your own and the check-issuing bank—to inquire about their specific policies. If you are an account holder in good standing, you will generally have a better chance of success. Always be prepared for both parties to be present with valid identification.
Given the difficulties, it is often more straightforward to deposit the check into your own account and then use other methods, such as electronic transfers or writing a new check, to pay the third party. As you navigate your financial needs, understanding the policies of these 17 Banks That Accept Third-party Checks (fees, Etc) can help you make more informed decisions.
Frequently Asked Questions
Here are some of the related questions people also ask:
1. What exactly is a third-party check?
A third-party check is a personal or business check that is signed over to another person by the original recipient. The original payee endorses the back of the check and designates a new person (the third party) who is now authorized to cash or deposit it.
2. Why do banks often refuse to cash third-party checks?
Banks are hesitant to accept third-party checks primarily due to the increased risk of fraud. It is difficult for the bank to verify the signature of the original payee and confirm that the transfer is legitimate. To protect themselves from losses, many banks have strict policies against them.
3. How do you properly endorse a check to someone else?
To properly endorse a check for a third party, the original payee must first sign their name on the back in the designated endorsement area. Below the signature, they must write, “Pay to the order of [Third Party’s Full Name].” The check is then given to the third party to endorse with their own signature upon deposit.
4. Can I cash a third-party check without a bank account?
Cashing a third-party check without a bank account is extremely difficult. Most banks that might consider cashing one will only do so for an established customer. You may have some luck at a check-cashing service, but they will charge high fees and require stringent identification from all parties involved.
5. Are there fees for depositing a third-party check?
Fees can vary. If a bank accepts a third-party check for deposit into an existing customer’s account, there is usually no extra fee. However, if a bank cashes the check for a non-customer, like Regions Bank, they will charge a fee, often a percentage of the check’s value with a minimum charge.
6. Do both people need to be present to deposit a third-party check?
Yes, it is highly likely. Most banks that are willing to consider a third-party check will require both the original payee and the third party to be present at the branch. Both individuals will need to show valid, government-issued photo identification to verify their identities.
7. Can I use a mobile app to deposit a third-party check?
Generally, no. The vast majority of banks, including major institutions like Bank of America and PNC, explicitly state in their terms of service that third-party checks are not eligible for mobile deposit. The risk of fraud is considered too high for remote transactions.
8. What is a safer alternative to signing over a check?
A much safer and more reliable alternative is for the original payee to deposit the check into their own bank account. Once the funds have cleared, they can then transfer the money to the other person using a secure method like an electronic funds transfer (e.g., Zelle, Venmo), writing a new personal check, or giving them cash.
9. Can I cash a third-party check at the bank the check was drawn on?
You might have a slightly better chance at the check writer’s bank because they can immediately verify that the funds are available. However, that bank still faces the same risk of a fraudulent endorsement and may have a policy against cashing third-party checks, even if the funds are good.