To sign a check over to someone else, is to relinquish the right to cash the check to the person. There are requirements which have to be met before you could do this. Otherwise, banks will not cash the check.
There is a high risk of check frauds with checks signed over to someone else. What do I mean by this?
Anyone can easily find a check and sign it over to himself or herself claiming the check was endorsed. It explains why most banks are skeptical about cashing third party checks. A third party check is a check endorsement to someone else.
On this article, I will teach you the proper way to endorse a check to someone else. That way, the person can cash it without experiencing what happens when one deposits a bad check.
How Do You Sign A Check Over To Someone?
There is a proper way to endorse a check to someone else. Otherwise, you run the risk of the check getting rejected by a bank. So, how do I sign a check over to someone else?
Firstly, the check has to be correctly written. This is with me being the original recipient. Being the initial person to whom the check was made out to, makes it easy to transfer the cashing right to someone else.
Secondly, I make sure the person’s bank accepts third party checks. I either call the person’s bank or have the person confirm. This is because not all banks take third party checks.
If the person’s bank does not accept it, then signing a check over to someone is futile. It becomes incredibly frustrating finding a bank which will cash the check. Hence, the importance of verifying recipient’s bank policy on third party checks before you endorse a check to someone else.
Once I confirm the two things above, I can sign a check over to someone else by doing the following:
- Sign the back of the check. The back of a check has a line called the check endorsement line. This is where I sign.
- Below the line (the endorsement area), I write pay to the order of. Then, follow by the recipient’s legal name.
Here is what I mean.
You sign on the endorsement area. Below the endorsement areas, you write: Pay to the order of Albert Einstein. This endorsement indicates Albert Einstein as the new owner of the check.
Sometimes, a bank may want you to write something else in addition to the above. This is why I always encourage calling the recipient’s bank first to inquire its policy on third party check. It will save you from deposit difficulties.
Who Signs the Back Of An Endorsed Check?
The person relinquishing the rights to a check to another person will sign it. It is the same person to whom the check was initially made to. To simplify, the person’s legal name must be on the check. Do you understand?
If you are receiving a check which does not have your name, do not sign the check to yourself. It renders the check useless. This is because your name is not on the check and it is not endorsed to you. As a result, almost all banks will treat the check like a fraud case.
So, make sure the person endorsing a check to you signs it over to you. Personally, I would always call my bank to inquire how it wants me to have the third party check ready for deposit. This is prior to me receiving the check. It prevents any bank from rejecting the check as fraud, since you are following policies.
Can You Deposit Someone Else’s Check In Your Account?
I can deposit someone else’s check into my account, if they endorse it. When I was twenty five years old, my ex-wife showed how to do it after I argued it was not possible. I know- there is nothing blissful about financial ignorance.
Anyways, a third party check deposit depends on your bank’s check cashing policy. Also, it depends on whether the process of endorsing a check to another person was done properly. I want you to know it is a risk for a bank to accept a third party check. As a result, there may be a strict policy towards depositing such a check.
Additionally, some banks want you to sign a check over to someone else in the presence of their tellers. It is the only way to verify there is no check fraud involved. In this case, the person signing over the check should have a form of legal identification with names matching the name on the check. It shows he or she is authorized to sign over a check.
Can someone else deposit a check for me?
Someone else can deposit a check for me, when I am not able to do it. They are going to have to do it on their bank accounts though. The process is still the same. You sign over the check to them and have them deposit it in their bank accounts. Then, transfer the money to you.
It helps to know one’s bank policy before you endorse a check to a 3rd party. The last thing you want is to have a difficult time trying to deposit the check. Speaking of banks that take third party checks, I made a list of some below.
What Banks Accept Double Endorsed Checks?
As I previously mentioned, not all banks are okay accepting third party checks. This is because there is always that chance of a check fraud. Can you see the fear with some banks rejecting it?
Notwithstanding the risk of a check fraud, some banks are okay accepting third party checks. Below are some major banks in the United States, which will take double-endorsed checks.
- Citi Bank
- PNC Bank
- Navy Federal Credit Union. It will only cash the check, when the check endorsement to someone else is done in the presence of a teller.
- U.S Bank
- T.D Bank
- Chase Bank
- Bank of America. It will not accept mobile check deposit of such a check. You have to go in person to deposit the check.
- First National Bank. You have to be a customer to cash the check. Also, both parties have to be there to do the sign over of the check.
I bet the number of banks accepting third party checks are greater than what I just listed. Just be sure to call the recipient’s bank to confirm it does. This is to avoid the person having difficulty cashing the check.
Also, I would be sure the check is properly written before I accept having it signed over to me. A check can still be signed over you and be rejected by a bank, because it was poorly written. You have no idea at the number of people who do not know how to write a check. I used to be one of them in my early twenties.
Anyway, I showed what a good check should look like on How To Write A Check To Someone article. I recommend you read it, so as to know what a good check looks like before it is signed over to you.
To conclude this article, signing over a check is easy but cashing it could be hard. This is because not all banks accept a third party check. So, it helps to first inquire the recipient’s bank policy towards depositing a third party check. It will save you a lot of headaches.
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