You can deposit someone else's check into your account if you are named on it or if the owner signs the back
A check made out to someone else can go into your account in two ways: the person whose name is on the check can sign the back and hand it to you (called a third-party check), or you can be listed as a joint owner or authorized representative on the account where the money belongs. Banks treat these differently, and the rules vary by institution and state.
The simplest route is to have the check owner sign the back of the check and write "Pay to the order of [your name]" above their signature. You then sign below that. This is called endorsement, and it tells the bank the original owner authorized you to deposit it. Many banks will accept this, though some have stopped because of fraud risk.
If the check is made out to two people — "John Smith and Jane Doe" — both must sign it before you can deposit it, even if only one of them is giving it to you. If it says "or" instead of "and", either one can sign alone.
Key Takeaways
- Third-party checks (signed over to you by the original owner) are legal but many banks now refuse them because of fraud risk.
- The check owner must write "Pay to the order of [your name]" on the back, sign it, and you must also sign below their signature.
- Mobile deposit and ATM deposit often reject third-party checks automatically, so you may need to visit a branch in person.
- If the check is made out to two people joined by "and", both must sign; if joined by "or", either one can sign alone.
- Some banks will not accept third-party checks at all, so call yours before asking someone to sign one over to you.
Why banks are stricter about third-party checks now
Third-party checks create a paper trail that is harder to verify. The bank sees three names: the payer (who wrote the check), the original payee (whose name is printed), and you (the depositor). If something goes wrong — the check bounces, the signature is forged, or the original owner disputes it — the bank has to chase down two people instead of one.
Fraud is common with third-party checks. Someone might forge the original payee's signature, or a scammer might collect checks made out to a business and sign them over to themselves. Banks have responded by refusing them outright or accepting them only under strict conditions. Call your bank before you ask someone to sign a check over to you; many will tell you they do not accept them at all.
If your bank does accept third-party checks, mobile deposit and ATM deposit usually will not. You will have to go to a branch and hand the check to a teller, who can verify the signatures in person.
How to sign a check over to someone else correctly
If you are the original payee and want to give the check to someone else, write on the back: "Pay to the order of [their full name]." Sign your name directly below that line. The other person then signs below your signature. Do not write anything else on the back — no account numbers, no extra instructions.
Use the back of the check in the area marked for endorsement, usually a box near the top. If there is no box, use the left side of the back. Write clearly and in pen, not pencil. The person depositing it will need to show ID that matches their name.
Some checks have a line that says "For deposit only" with a space for a signature. If you see this, do not use it for a third-party transfer — this line is meant only for deposits into your own account. Use the regular endorsement area instead.
What happens if a third-party check bounces or is rejected
If the check bounces, the bank will charge a fee to whoever deposited it (you, in this case), not the original owner. The fee is usually $25 to $35. The bank will reverse the deposit, and you will owe the money back. If you have already spent it, you will go negative.
The original owner is not liable for the bounced check fee — you are, because you deposited it. This is why many people refuse to accept third-party checks: they do not want to risk the fee if the check fails. If someone asks you to deposit a third-party check, understand that you are taking on the risk.
If the check was fraudulent (the signature was forged or the account was closed), the bank will investigate, but the investigation can take weeks. Your account will be negative during that time, and you may owe the bank money even after they reverse the deposit.
Safer alternatives to third-party checks
If you need to move money from one person's account to another, a third-party check is one of the slowest and riskiest ways. Consider these instead:
- Have the check owner deposit it themselves and transfer you the money. They deposit the check into their account, wait for it to clear (usually one to two business days), and then send you the money via ACH transfer, wire transfer, or a peer payment app like Venmo or PayPal. This takes longer but leaves a clear record and puts no risk on you.
- Use a peer payment app. If the check owner has a smartphone, they can deposit the check directly into the app using mobile deposit, then send you the money instantly. Apps like Square Cash, PayPal, and Venmo all offer this.
- Ask the payer to write a new check in your name. If the check was meant for the original owner but they want to give the money to you, ask the payer to write a fresh check with your name on it. This is the cleanest option and takes only a few minutes if the payer is still available.
- Use a joint account. If you and the check owner share finances regularly (spouse, parent, business partner), open a joint account together. Checks can be made out to either of you or both, and either can deposit them without signatures or endorsements.
State and bank-specific rules that affect third-party checks
Federal law does not ban third-party checks, but individual banks and some states have their own rules. California, for example, does not prohibit them, but many California banks refuse them anyway. New York has no state-level ban either, but the same is true there.
Some banks accept third-party checks only if the original payee is present in person at the branch. Others accept them only if the amount is below a certain threshold, like $500. A few accept them without restriction. The only way to know your bank's policy is to call and ask, or check your account agreement online.
Credit unions often have different rules than big banks. Some credit unions are more willing to accept third-party checks because they know their members personally. If you are a member of a credit union, ask them before you assume they will refuse.
What to do if your bank refuses the third-party check
If you show up at the bank with a signed-over check and the teller says no, you have a few options. Ask the teller if there is a manager who can override the policy — some banks allow exceptions for certain situations, like checks from family members or checks under a certain amount.
If the bank will not budge, ask the original check owner to deposit it into their own account and send you the money instead. This is the fastest workaround and avoids the whole third-party problem. If they do not have a bank account, they can cash the check at the bank that issued it (the bank name is printed on the check) and give you cash, though this means they have to be present in person.
If the check owner is not available or unwilling to help, you are stuck. The check cannot be deposited without their involvement, because their name is on it and the bank needs proof they authorized the transfer.
Frequently Asked Questions
Can I deposit a check made out to my business into my personal account?
No. A check made out to a business name must go into a business account, even if you own the business. If you try to deposit it into a personal account, the bank will reject it. You will need to open a business account or have the payer write a new check in your personal name.
What if the check is made out to "Cash"?
A check made out to "Cash" can be deposited by anyone who has it, because "Cash" is not a specific person. You do not need the original owner's signature. However, some banks will not accept checks made out to Cash because they are easy to steal and hard to trace. Call your bank first.
Do I need ID to deposit someone else's check if they signed it over to me?
Yes. You will need an ID that matches the name you signed on the back of the check. The teller will compare your ID to the endorsement to make sure you are the person the check was signed over to. Without ID, the bank will not accept it.
Can I deposit a third-party check using mobile deposit or an ATM?
Almost never. Mobile deposit and ATM deposit systems automatically reject checks with multiple signatures or endorsements. You will have to go to a branch and hand the check to a teller in person. Even then, the teller may refuse it depending on your bank's policy.
What if someone asks me to deposit a check and then send them the cash?
Be very careful. This is a common scam. Someone gives you a check (often a fake one or one they stole), you deposit it, you send them cash or a wire transfer, and then the check bounces days or weeks later. You are left owing the bank money. Never deposit a check for someone else unless you know them well and trust them completely.