Most checks only involve two parties. So, the check is made payable from one person or business to another person or business. Or, to put it more simply 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, which allows the third party to cash the check.
So, person B receives a check from person A, and person B signs the check over to person C.
To create a third-party check, 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 turns the check into a brand-new check for someone else.
Now, because 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.
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Because third-party checks come with an 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.
Each place has its own policy for cashing endorsed checks. For example, some banks might ask the original payee to complete a form to confirm that you, the person to whom they’ve endorsed the check, has permission to cash the check. And, some places don’t accept third party checks at all.
While there are many grocery stores and gas stations that cash checks, with many places even providing a 24-hour check cashing service, most gas stations and grocery stores don’t typically cash third-party checks.
So, you might be wondering…
What will I learn?
“Where can I cash a third party check?”
Short answer: Some banks, such as Citibank, Bank of America, and US Bank will cash third-party checks, and you’ll only pay a fee if you’re not an account holder. You can also 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, but unlike banks that provide the service to customers for free, check cashing stores tend to charge a fee.
These places will require you to show proof of identity to cash a check, and, in some cases, both payees will need to be present.
For more places that cash third-party checks, and for more details on how to cash them, make sure you read the rest of the post!
Banks that Cash Third-Party Checks
Some banks cash third-party checks, but the policy can vary from branch to branch. That’s why it’s important to call ahead and ask your local bank whether they accept third-party checks at that specific location.
If you’re looking to cash a check for free, then the bank where you’re an account holder is your best option.
Banks usually require ID to cash a check. This is typically a photo ID. Some banks may require more than one form of ID. Also, certain banks will require both the original payee and the third-party to be present in order to cash or deposit the check.
Here are some banks that may cash third-party checks.
Citibank has more than 2,300 ATMs in over 600 branches in the U.S., and 60,000 other surcharge-free ATMs in its network.
It cashes lots of types of checks such as cashier’s checks and government checks.
You can cash some third-party checks at Citibank, but there are specific requirements in place.
Non-customers can only cash checks drawn from Citibank.
Citibank account holders can only cash checks up to the available checking account balance. So, if the checking amount is more than the balance, the remaining balance may be deposited.
Citibank may require the original payee to verify or guarantee their endorsement.
If you’re a customer at Citibank, you will not pay fees. Non-account holders can cash third-party checks drawn on Citibank for a maximum of $5,000.
2. US Bank
US Bank is another place 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.
There’s a $7 fee for non-customers. U.S. bank allows you to cash personal checks and other types of checks as well.
3. Bank of America
Some Bank of America locations will cash third-party checks.
However, cashing and depositing third-party checks is handled on a case-by-case basis. So, approval is at the discretion of the manager at each Bank of America location. Both parties must be present to deposit a third-party check.
Ask your local branch if they would be willing to cash your check.
Bank of America account holders can cash third-party checks for free.
There’s an $8 fee on checks over $50 if you’re not a customer.
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.
At HSBC, non-account holders may only cash business checks and personal checks drawn at HSBC.
It’s free to cash personal checks. To cash business checks, non-account holders will pay a fee for checks up to $100 and $5 for larger checks.
6. Truist (Formerly 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.
7. M&T Bank
M&T Bank will allow you to cash third-party checks. Non-customers are only able to cash third-party checks that are drawn on M&T.
There’s a fee for non-customers, which is 2% of the total check amount. There’s a minimum fee of $3 and a maximum fee of $20.
Both the original payee and the third party must be present for in-person verification in order for the check to be cashed.
8. TD Bank
TD Bank will cash third-party checks in some cases. Like with some of the other banks on the list, third-party check cashing is handled on a case-by-case basis. Get in touch with your local branch to ask if they will cash your third-party check.
There’s a $7 fee per check for non-customers.
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
Many credit unions will cash third-party checks. Like with banks, you will usually need to provide an ID in order to cash or deposit the check. And, some places will require the original payee, as well as the new payee, to be present to cash or deposit the check.
10. Navy Federal Credit Union
The Navy Federal Credit Union will cash third-party checks. But, there are requirements. Members must sign third-party checks in the presence of a teller.
Only checks drawn on NFCU are accepted for non-members. Non-members can cash third-party checks drawn on NFCU if both parties are present for in-person verification.
Check cashing at Navy Federal Credit Union is free for both customers and non-customers.
11. 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.
12. Chartway Federal Credit Union
Chartway Federal Credit Union allows you to cash or deposit a third-party check. Members can cash or deposit any third-party check. But, non-members can only cash third-party checks that are drawn on Chartway Federal Credit Union. It’s free to cash checks at Chartway Federal Credit Union.
Check Cashing Stores that Cash Third-Party Checks
Check cashing stores will cash many types of checks. Most are open for longer hours than banks are, so if you’re looking to cash checks after work, for example, then you may be able to.
The downside to check cashing stores is that they normally charge a fee for check cashing.
The fees vary from place to place. Make sure you call ahead to get a better idea of the amount you’ll pay for cashing the type of check you have.
Many check cashing stores also provide other financial services, alongside check cashing, like payday loans (always avoid these if possible), installment loans, and money transfer services.
13. ACE Cash Express
ACE Cash Express is a check cashing store where you can cash third-party checks. Fees start at about 2% of the check amount but vary from location to location, and by check type.
The requirements for cashing a third-party check may vary from store to store. Both parties may be required to verify endorsements.
14. Advance Financial
Advance Financial has more than 100 stores in Tennessee. Some Advance Financial locations are open 24 hours, so if you are looking for 24-hour check cashing, then you may want to give it a try. Check with your local store to see its opening hours.
Advance Financial cashes many different types of checks, like insurance checks and personal checks.
Fees range from 1% to 5% of the check amount for most types of checks. For personal checks though, the fee is 10%.
To cash a third-party check at Advanced Financial, the check must be endorsed in person, and the endorsers may be required to verify their original signatures.
15. Check ‘n Go
Check ‘n Go will cash third-party checks. Fees start at around 2% of the check amount. Fees vary though depending on the type of check and amount. In order to cash a third-party check, both parties must be present for in-person verification.
16. The Check Cashing Store
The Check Cashing Store is another place where you can cash a third-party check. You can only cash third-party checks at select The Check Cashing store locations. So, contact your local store to see if it will cash your third-party check.
Fees vary depending on the location, check amount, or type of check.
17. Speedy Cash
There are 160 Speedy Cash locations in the United States. Some Speedy Cash locations are even open 24 hours.
Speedy Cash says it will cash all types of checks, such as cashier’s checks, insurance checks, and personal checks. Fees start at $2.
Speedy cash will need to verify the original payee and the issuing bank by phone when you cash the check.
Cashing a Third Party Check: Takeaway
As you can see, there are many places where you can cash a third-party check.
Many banks, credit unions and check cashing stores will cash third-party checks.
If you’re looking to avoid fees, then the bank is your best option, provided that you are a customer of that particular bank. Banks will usually cash checks for account holders for free.
Check cashing places can be good if it’s the convenience you’re looking for because they are often open for longer hours than banks are, so if you struggle to get to your bank during opening hours, they’re a good choice.
You do, however, have to pay fees at these stores, so if you are looking to avoid fees, banks and credit unions are better options. Just make sure you call ahead at your bank or credit union to ask about the policy on cashing third-party checks at that particular location.
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