How to endorse a check over to someone else (e.g. third party)

How do you endorse a check over to someone else (e.g. third party check?)

To endorse a check, write ‘pay to the order of’ and the name of the new Payee on the back of the check. Then, sign the back of the check to endorse which releases your rights to the check. The new Payee may then cash the check by visiting the bank, ATM or mobile app deposits.

Imagine, being able to pay someone by giving them the rights to a check. Even better, how about being able to deposit someone else’s check into your bank account?

Knowing how to endorse a check can come in handy.

Luckily for you, I’ll show you that it’s fairly easy to endorse a check. I’ll even show you how to endorse a check, so you can cash it, even if it’s not in your name. You’ll be able to get your money in minutes if you’re sitting right next to each other.

21-101 - How to endorse a check over to someone else (e.g. third party)

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Can you endorse a check to someone else?

It is possible to endorse a check to someone else. By endorsing a check, you are giving up your rights to cash or deposit the check over to a third party. Therefore, you can endorse a check to a trusted third party which allows them to cash a check for you.

When a check is written, it’s considered a two-party check. The payment is between the Payer and the Payee. Endorsing a check makes it a third-party check, because the Payee is signing over a check to a third-party.

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How to endorse a check over to someone else

To give ownership of a check to someone else, sign the back of the check. Write ‘Pay to the order of’ and the new Payee’s name. Signing the back of the check allows anyone to cash or deposit the check. Therefore, ensure you write the new Payee’s name on the check to prevent someone else from cashing.

Here’s a video from Helpful DIY, which shows you the exact process of endorsing a check.

In the video, the original check was made out to John Smith for one thousand dollars. John Smith wants to give this check to Anthony Rich.

John Smith flips the check over, so he can write on the back of the check. On the back, John writes, ‘Pay to the order of Anthony Rich’ and then John also writes his signature.

Anthony Rich is now the official owner of the check. All John has left to do is give the check to Anthony.

How can I cash a check that’s not in my name?

To deposit or cash a check that’s not in your name, have the check owner endorse the check. Endorse the check by writing ‘pay to the order of’, the new Payee’s name, and sign the back of the check. You now have the right to deposit or cash the check via a bank visit, ATM or Mobile app deposit.

Once a check is endorsed, you can cash it like any check that’s written to you as the Payee. Therefore, you can visit your bank, ATM, or use Mobile App deposit.

However, not all check cashing services will cash third-party checks. For example, Walmart’s check cashing services only take two-party checks, not third-party. Therefore, it’s best to take third-party checks directly to your bank or use bank services.

Take an endorsed check to a bank

When visiting a bank, fill out a deposit slip with your account number and the amount on the check. Take the deposit slip to your bank teller or visit the bank’s drive through. The teller will deposit the check, but may ask for government issued identification and a signature if cashing.

Some banks may even offer a check deposit box so you don’t have to talk to a teller. The check deposit boxes have security envelopes that double as a deposit slip. Fill out the envelope, put the check into the envelope, and deposit into the box. Typically, the funds are received overnight.

Deposit an endorsed check at an ATM or Mobile app

You can also deposit a check via your bank’s ATM. Visit an ATM and enter your debit or bank card with your PIN number. Follow the onscreen prompts for depositing a check.

Some banks will allow you to deposit a check via your bank’s Mobile app. Download your bank’s Mobile app and look for mobile check deposits. You’ll need to take a picture of the front and back of the check and electronically submit.

It is important to hold onto the check until you’ve confirmed the funds are received. Banks may reject the transaction if they can’t confirm the details of the check. For example, your picture might be unreadable due to camera flash.

Depositing someone else’s check into your account isn’t very difficult. All you need is for the original owner to endorse the check. Then, it’s just a matter of cashing or depositing like a normal two-party check.

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Summary: How to endorse a check over to someone else

As you can see, it’s very easy to endorse a check over to someone else. Endorsing a check allows you to sign a check over to someone else. The third-party may then deposit the check, just like they would a two-party check.

The difference between a two-party and third-party check is the number of people involved. An original check is written between a payer and a payee, so there are two-parties. A third-party check is when the payee gives their rights to the check to another person.

Not all check cashing services will cash a third-party check. However, you can cash a third-party check at your bank, bank’s ATM, or Mobile app deposits.

To endorse a check, write on the back of the check ‘Pay to the order of’, the new payee’s name, and sign. The rights to cash or deposit the check are now with the new payee.