Most banks no longer take third-party checks, but some still do under specific conditions
A third-party check is a check written to someone else's name that you then try to deposit or cash. For example, your employer writes a check to "John Smith," but you are Sarah Smith, and John signs the back and gives it to you. Most major banks stopped accepting these checks years ago because of fraud risk. However, some smaller banks, credit unions, and check-cashing services still take them — but only if the original payee signs the check in front of you or in front of a teller, and sometimes only if they have an account at that bank.
The rules vary widely by institution and by state. There is no single answer that applies everywhere. Your best move is to call the specific bank or credit union you want to use and ask whether they take third-party checks, what ID they need, and whether the original payee has to be present.
Key Takeaways
- Chase, Bank of America, Wells Fargo, and most other large national banks do not accept third-party checks under any circumstance.
- Some credit unions and smaller regional banks still accept third-party checks if the original payee signs the back in front of a teller and shows ID.
- Check-cashing services often take third-party checks but charge a fee, usually 1 to 5 percent of the check amount.
- The safest option is to ask the original payee to deposit the check into their own account and then send you the money directly.
- State laws vary on third-party check rules, so what one bank accepts another may refuse.
Why banks stopped taking third-party checks
Third-party checks create a fraud trail that is hard to follow. If the check bounces or turns out to be stolen, the bank has to chase down two people instead of one. If the original payee denies signing the back, the bank cannot easily prove they did. The liability and the paperwork cost more than the check is worth.
After the 2008 financial crisis, banks tightened their rules across the board. By the early 2010s, most major banks had stopped accepting third-party checks entirely. The practice is now rare enough that many bank tellers have never processed one and do not know the rules.
Which banks and credit unions still accept them
Credit unions are more likely to accept third-party checks than national banks, especially if both the original payee and you have accounts there. Local and regional banks vary — some take them, some do not. There is no master list because policies change and differ by branch.
If you want to find out whether your bank takes third-party checks, call the branch directly and ask. Do not rely on the website or the customer service number — ask to speak to someone at the branch where you plan to deposit it. Tell them the exact situation: who the check is from, who it is made out to, and who will be depositing it. They will tell you yes or no and what they need from you.
Some credit unions that have historically been more flexible include Navy Federal, USAA, and various community credit unions, but this is not a may provide. Rules change, and some branches enforce policies differently than others.
What you need to bring if a bank says yes
If a bank agrees to take your third-party check, they will typically require:
- The original payee to be present and sign the back of the check in front of the teller.
- A government-issued photo ID from the original payee.
- A government-issued photo ID from you.
- Sometimes a thumbprint or signature from the original payee on a form the bank provides.
Some banks will not accept a third-party check unless both people have accounts at that bank. Others require the original payee to be a customer but will take it from a non-customer depositor. A few will take it from anyone, but this is rare. The teller may also ask why the check is being deposited this way — be prepared to explain briefly.
Check-cashing services as an alternative
Check-cashing stores, payday loan shops, and some grocery stores will cash third-party checks without requiring the original payee to be present. They charge a fee, usually between 1 and 5 percent of the check amount. On a $500 check, that is $5 to $25 out of your pocket.
The advantage is speed and no questions. The disadvantage is the fee and the fact that you are handing a stranger a check with someone else's name on it. If the check bounces, the store will come after you for the fee. Read the receipt carefully before you sign it.
What to do if the bank says no
If your bank will not take the third-party check, your options are:
- Ask the original payee to deposit it themselves. This is the simplest solution. They deposit the check into their own account, and then they send you the money by transfer, cash, or another method. It takes a few business days but costs nothing.
- Ask the original payee to write you a new check. They can write a check from their own account made out to you. This is a regular two-party check and any bank will take it.
- Use a check-cashing service. You pay a fee, but you get cash the same day.
- Ask the original payee to contact the issuer. If the check is from a business or government agency, the original payee can call and ask them to reissue it in your name instead.
The first option — having the original payee deposit it and send you the money — is almost always the fastest and cheapest.
State laws and local rules
Some states have laws that govern third-party checks, and some do not. A few states require banks to accept them under certain conditions; most do not. California, for example, has no state law requiring banks to take third-party checks, so banks there can refuse them. Other states leave it entirely to the bank's discretion.
If you are in a state that does have a third-party check law, the bank is still not required to take it — they can simply refuse to do business with you. The law does not force them to accept the check; it only sets out what they can do if they choose to.
Frequently Asked Questions
Can I deposit a third-party check online or by mobile app?
No. Mobile deposit and online deposit systems do not accept third-party checks. You must go to a branch in person, and the original payee must be there to sign the back in front of the teller. This is one reason banks have made it harder to use third-party checks — they cannot process them remotely.
What if the original payee is not in the same state as me?
You will need to arrange for them to be present at your bank branch in person. If that is not possible, ask them to deposit the check into their own account and send you the money instead. Some banks may make exceptions if you have a very good reason, but do not count on it.
Can I cash a third-party check at the bank it is drawn on?
Sometimes. If the check is drawn on Bank A and you try to cash it at Bank A's branch, they may be more willing to take it because they can verify the account immediately. Call the branch first and ask. This is not may provide, but it is worth trying.
What if the check is from a government agency or large company?
Call the agency or company and explain the situation. Many will reissue the check in your name if the original payee requests it. This is often faster than trying to find a bank that will take the third-party check.
Is there a fee to deposit a third-party check at a bank?
Most banks do not charge a fee if they accept it, but some credit unions or smaller banks might. Ask when you call to confirm they take third-party checks. Check-cashing services always charge a fee.