It is no secret that writing checks never seems old-fashioned. As we speak, some people still write checks for different purposes. From allowing you to make purchases to allowing you to make different payments, there are many ways writing a check can benefit you. Although most people usually write checks and deposit them in another person’s account, there are scenarios when someone may write a check and ask you to deposit it in your account. The good news is that most banks usually allow you to carry out these transactions as long as you fulfill some conditions. In this article, we shall take a closer look at how you can deposit someone else’s check in your account and other related ideas.
Is It Possible To Deposit Someone Else’s Check In My Account?
Yes. Such checks are commonly known as third-party checks. This is because such checks are written by an individual or an organization to another person, and then the check is given to a third person in order to deposit it in his or her account. Here, the check owner has to endorse the check over to you and later, you will be able to cash it at your bank. Currently, there are many banks in the US that allow a person to deposit a someone else’s check to his or her account.
Requirements To Deposit A Someone Else’s Check In Your Account
If you want to deposit a someone else’s check in your account, there are a plethora of conditions that should be met. One of them is that the owner of the check has to endorse the check to you. Here, you will act as the 3rd person. In this case, the owner of the check has to write ‘Pay to the receiver’s name’.
Since you are the receiver, your full name has to appear on the check. Besides this, the owner has to sign it at the back. If everything is done correctly, be sure that the bank will not have issues when it comes to the acceptance of the check.
However, before you take the endorsed check to your bank, it is imperative that you ask whether they accept endorsed checks or not. After all, banks have no legal obligation to accept such checks. Some of the banks that accept endorsed checks in the US include:
- Chase bank
- Bank of America
- Citi Bank
- TD Bank
Different banks will always have different sets of policies when it comes to accepting 3rd party checks. For instance, if the bank knows and trusts you, it may not have issues when it comes to accepting the check. Other banks may need the owner of the check to verify his identity and prove that the check is genuine and not stolen or fake.
All these measures are meant to mitigate the risk of accepting such checks. Therefore, the way a bank handles the whole issue will directly affect the seamlessness of the entire process. Other conditions include:
- You may not receive the funds as soon as you deposit the check as the bank can hold the funds until the bank that issued the check clears the 3rd party check
- Sometimes, you may not be able to deposit the check if you or the owner of the check is not a customer of that bank.
- Some banks only accept such checks if the two people are involved in writing the check. Here, one of them endorses the check, and the other one deposits it in his or her account.
Procedure For Endorsing A Check Over To Someone Else
Since we have established that it is possible for someone to deposit your check in his or her account, there is a need for you to know how one can endorse a check. Here are the steps involved in endorsing check:
- 1. Choose whom you want to sign your check over to: This is the first step that is involved whenever one wants to endorse a check. There are many categories of people whom you can sign a check over to. These include an individual person, group of people, or even a company. The choice is solely yours. Since depositing a third-party check is not as easy as it seems. Therefore, you have to choose someone whom you fully trust.
- 2. Ensure that the person or the organization of your choice will accept the endorsed check: Some people may be jittery when it comes to third-party checks. This is due to horrible past experiences and so forth. However, as long as you agree that your check is genuine and that all the necessary details are present on the check, be sure that there will be no issues.
- 3. Ensure that person’s or organizations bank accepts third-party checks: Like we mentioned above, not all banks accept third-party checks. Therefore, you need to check and confirm whether the bank or financial institution of your person or organization that you want to sign the check over to accepts 3rd party checks or not. By doing so, you will avoid the confusion that comes with multiple signatures.
- 4. Sign at the back of the check: If everything is okay, time is ripe for you to sign at the back of the check where it reads ‘endorse check here.’ Below it, you can sign your official name as it appears on the front part of the check.
- 5. Write the name of the person or company that you are signing the check over: Once you are done with the 4th step, write the name of the person or company you want to sign the check over under your signature. By writing the name of that person or company in the endorsement area, be sure that the bank will know that you are endorsing the transfer of ownership of the check.
- 6. Deposit the check in a bank account: Since the endorsement has been done, the designated or preferred third party can now go to their bank and deposit the check.
Process Involved With Depositing Someone Else’s Check
Once you take a someone else’s check to your bank to deposit it, there are a number of processes involved before the funds can be credited to your account. These include:
- The moment you go to deposit the 3rd party check, the bank will first receive it.
- The bank officer will then separate the checks depending on the banks that issued them. This is because these checks can be more than one.
- Your bank will send the check to the issuing bank in order to request payment for the amount that has been indicated on the check. This usually takes place at the end of the banking hours.
- The issuing bank will check and confirm that the check is genuine and not fake. The bank will also check and confirm whether the check was written and issued by the legitimate person or not.
- The bank will also check whether the owner of the check has enough funds in his or her account enough to cover the amount posted on the check.
- If everything is alright, the bank that issued the check will transfer the funds to the bank where your account is, and now money will be available in your account after a few days.
In case there is a problem, the bank that issued the check will reject your bank’s request to pay the amount indicated on the check. You may have to contact the owner of the check to check with his bank and solve any issue that may have cropped up during the whole process. Since the process of checking and confirming the details mentioned above is rigorous, it may take several days or even a week for you to have money in your account.
Are There Alternatives To Signing Over A Check?
Although the procedure mentioned above has proved to be very effective in the recent past, there is no doubt that it can be complicated for many. Other times, some banks may not allow it and thereby inconvenience you. The good news is that there are some alternatives that can work for youths include:
1. Cash it at the issuing bank
In fact this is one of the fastest and easiest ways to cash a 3rd party check. Since the check issuer maintains an account with that bank, be sure that you will not encounter any logistical challenges as you will reduce a large portion of the process involved in handling the check transaction.
The bank will look at the account of the person who issued the check and the amount that he or she has in the account and then transfer the money to you. If you do not have an account with the issuing bank, you may have to part with a certain service fee.
2. Cash in retail stores
As we speak, there are some national stores that allow people to cash 3rd party checks. However, these stores usually charge a certain service fee. Some of the best cash checking stores include:
- ACE Cash Express
- Advance Financial
- Speedy Cash
- Check ‘N Go
- The check Cashing Store
If you opt to visit The Check Cashing Store, note that only some locations allow customers to cash 3rd party checks. Therefore, you can visit your nearest store and make enquiries.
3. Deposit the 3rd party check to a prepaid account
Although you can deposit a 3rd party check in your prepaid account, it is important to note that some prepaid card companies hardly allow their customers to deposit such checks. However, government checks stand a higher chance of being accepted as the federal government can back such checks.
If your prepaid card company allows such checks to be deposited, you can go ahead and deposit it. Ideally, you should ensure that the name that appears on the check matches the name on your prepaid debit card. By doing so, you will avoid any issues that may hinder you from cashing the check.
Recommended Article : Where Can I Cash a Government Check
Although it is possible to deposit someone else’s check in your account, it is essential that you be on the lookout for check cashing scams. More importantly, the owner of the check should write something like ‘Pay to (your full name) at the back of the check and then sign it. Also, you should check and confirm whether your bank accepts 3rd party checks or not. Consider the procedure and ideas we have mentioned above, and you will not experience any hiccups when depositing a someone else’s check to your account.