Are you tired of the hassle of visiting a bank branch to cash your third-party checks? Look no further! In this article, we will explore the best ways to cash third-party checks online instantly, saving you time and effort.
Third-party checks, also known as two-party checks, are checks that have been signed over to someone else, making them the third party. These checks are commonly used when individuals want to transfer funds to another person or fulfill a debt. Cashing a third-party check online instantly is now easier than ever, thanks to the advancements in financial technology.
So, how can you cash a third-party check online instantly? Let's dive into the options
Table of Contents
What is a Third Party Check?
Before going any further, let's first understand what exactly is a third-party check.
A third-party check is a two-party check (check written by the original writer to a payee) that has been signed over to someone else who becomes the third party.
A check is written from one person to the payee but can be equally endorsed to a third party. Following endorsement, the initial payee has transferred ownership of the funds to the third party.
I can basically send you a $100 check. You owe your pal, nonetheless, $100. To clear off your debt with the check, you can simply endorse it over to him.
Signing over the check rights to your friends automatically makes the check a third party check.
Simply put, the check writer and the payee make a two-party check. When the payee endorses the check to someone else, the check becomes a third party check.
Third-party checks have various uses. You might have even cashed a third party check without being aware of it.
Why Use a Third-Party Check?
There are many reasons for using a third party check some of which are as follows;
- You owe someone else money and signing over the check fulfills that debt.
- Endorsing the check allows someone else to cash it for you.
- You want to give money away but don't have any cash on you, only a check made out to you.
How do you Endorse a Check to a Third Party?
Endorsing a check to a third party is very easy.
A third-party check can be endorsed by signing the check back and adding "pay to the order of" and the name of the new payee.
There are instructions for endorsing checks on the check's back. You can contact your bank to get more detailed information.
How To Cash a Third Party Check?
The most difficult part with third party check is cashing them, but if you frequently deal with third party checks, you should know that it isn't as hard as it might seem.
Cashing a third party check shouldn't be hard if you have been given the full rights of the check.
That said, the payee should sign the check rights over to you before you would be able to cash it without any hassle.
To cash a third party check, visit a bank with the endorsed check and photo ID. The check should be cashed like a two-party check either in physical cash or deposited to your bank account.
The bank might require more details from you if they detect fraud.
Here's a step-by-step process to cash a third party check at a bank.
Step 1:Verify the Third Party Check is Endorsed
Checking that you are named as the new payee and that the check has been endorsed over to you is the first step to take.
Make sure that the original payee has endorsed the check in your name and signed the checks back. If your name is not on a check's payee line, you won't be able to cash it.
Step 2: Have Photo ID Ready
You might need to present photo identification to your bank in order to deposit the check.
Third-party checks are an easy target for fraud, which banks are continuously looking out for.
If fraud is suspected, a bank could ask you to provide your photo ID or the ID of the second party.
Step 3: Visit a Bank In-person and Cash the Third Party Check
A bank is an ideal place to cash a third-party check in person.
Usually, you shouldn't experience any problems when cashing a third-party check at your bank or credit union.
If you cash a check at a bank that you are not a member of, you can be charged a fee or have to provide identification.
Can I Cash a Third Party Check Online?
Yes, you can cash a third party check online if your check has been fully endorsed.
How To Cash a Third Party Check Online Instantly
Cashing a check online is easy thanks to many financial apps that offer the service.
At times, you shouldn't look too far to cash your check online; if your bank features an online banking platform, then they surely offer a feature that lets you cash third-party checks online instantly.
Just as cashing a third-party check in person at a bank branch, you should make sure that the original payee has signed over the check's right to you.
That said, here are some ways to cash a third-party check online instantly.
1. Use Your Bank Mobile App
Online banking is an essential service offered by most banks now. It lets users complete most of their financial transactions without having to visit a bank branch.
Most U.S. banks offer a check cashing feature that lets users cash their checks online. All you'll need is to take pictures of your check's front and back sides, enter the amount to cash, and provide some information required to cash the check.
If your bank offers a check cashing feature, then you can cash a third party check online instantly through the bank's mobile app.
2. Use Ingo Money App
Ingo Money app is the best app for cashing checks online as is recommended by many financial experts.
Through the Ingo Money app, you can cash third-party checks online instantly on a mobile device anytime, anywhere, and get your money in minutes in your bank, PayPal, and prepaid card accounts or buy an Amazon.com Gift Card.
To cash your check, take a photo of the front and back and submit it for review.
If your check is approved and your account is funded or your bill is paid, the money is guaranteed.
You can even split your check to fund multiple accounts.
The best is, there's no credit check required to use the Ingo Money app.
Also Read: Best Untraceable Money Transfer App
3. Use Venmo App
Aside from being a popular P2P payment service that lets users conveniently send and receive money, Venmo is one of the apps that lets users cash third-party checks online instantly.
Venmo is also one of the financial apps that offer financial aid to its customers; eligible users can borrow money from Venmo.
You can use the Venmo app to cash out third-party checks online instantly. Additionally, it charges a 1% fee for payroll checks plus government checks.
For all other checks, there is an additional 5% cost. You won't be required to pay any costs if you choose the 10-day approval option.
You get access to more than 30,000 fee-free ATMs and MoneyPass locations using Venmo. You must log in to your Venmo account and upload a photo of your check in order to cash out your check using Venmo.
4. Use PayPal
PayPal is without a doubt one of the best international money transfer apps that lets users send and receive money to and from any part of the world.
PayPal is accepted by millions of merchants worldwide and as such, makes it easy for business to receive their payments.
PayPal also offers loan options for those looking for financial aid.
You can cash third-party checks online instantly through the PayPal app without having to go to your bank. You'll be charged a 1% fee for cashing payroll and government checks.
Additionally, all other checks will incur a 5% fee. You can cash out up to $5,000 worth of checks using the app.
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5. Use Chime
Chime is an online-only financial technology company that partners with two banks (The Bancorp Bank or Stride Bank, N.A) to offer fee-free banking services including checking accounts with virtual debit cards.
Among its financial services is the Chime SpotMe which lets users borrow money from Chime.
Chime also lets users cash third party check online instantly.
To cash a check through Chime, open the Chime app, tap Move Money at the bottom of your screen, then tap Mobile Check Deposit. The Chime app will guide you through the rest of the mobile check deposit process — it's as easy as that!
6. Use Netspend
Netspend is one of the biggest prepaid card companies in the US.
Netspend allows you to cash third party check online instantly.
Checks can be electronically cashed through the company's app. Payroll or government checks will have a cash-out fee of 1% or $5, whichever is higher.
In addition, you'll have to pay a fee of either $5 or 4% for all other checks. Interestingly, you can save up to 50% on medications that have received FDA approval.
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How do you Cash a Third Party Check Without the Other Person?
The original payee of a third-party check must sign the check, transferring the rights to you, in order for you to cash it.
The original payee must endorse the check on the back by signing and writing "pay to the order of your name." Cash the check in a bank, but if fraud is suspected, both parties may need to present a photo ID.
Endorsing the check is the first step in cashing a third-party check. A check's rights are transferred to a third party by an endorsement. Thus, third party check was created.
Read the instructions on the check's back before endorsing it.
But all that needs to be done is sign the back and write the new payee's name. There can be unique guidelines from your bank.
The next step is to go to a bank, credit union, or specific check cashing business. You should check the bank's policies, although you could need both of your IDs.
The bank's top priority is preventing fraud, so call beforehand to confirm the requirements.
Unfortunately, mobile deposits of third party checks are not accepted by the majority of institutions. However, you can try depositing money via an ATM or mobile device to see if the cheque clears.
Just be careful not to discard the cheque prior to the deposit clearing.
For instance, third party check mobile deposits are not accepted by Bank of America. However, you can deposit a check from a third party at a financial center.
Where Can I Cash Third-party Checks?
You can cash third-party checks at;
- Bank or credit union
- Currency exchange
- Cash Apps
Fees are usually required to cash third-party checks. For instance, banks typically do not charge a fee for their services, whereas currency exchanges frequently do.
Can I Deposit a Check Signed Over to Me at an ATM?
Checks that have been signed over to you shouldn't be deposited into an ATM. Banks will take the cheque from the ATM and decide whether or not to deposit money. Checks that fail to clear may be mailed to the address the bank has on file for you.
Depositing third party checks at a financial institution is typically not problematic. However, any warning signs could prompt the bank to look into any fraud problems.
Checks have been successfully deposited at ATMs. The cheque will either be mailed to an outdated address on file or you will have to try to deposit it again later.
Cashing a Third-party Check via an ATM
You might think about using the check-cashing feature on an ATM to cash your third-party check.
However, keep in mind that you would require a bank or checking account in order to cash third-party checks through an ATM.
With the exception of working with an automated machine rather than a bank teller, cashing a check through an ATM is practically identical to cashing a check with a bank.
Can I Mobile Deposit a Third-Party Check?
As long as the check is properly endorsed, you can mobile deposit a third-party check in the same way that you would physically deposit the check at a bank.
The person signing the check over to you must write "Pay to the order of" followed by your name in the endorsement field on the check's reverse, followed by their signature.
Ask the person signing the check over to you to write "Pay to the order of" followed by your name, followed by another instruction that specifies "for mobile deposit only," followed by the person's signature, to increase your chances of the bank accepting the third party mobile check deposit.
In order to avoid issues with check processing on the bank's end, be sure that the person signing the check over to you for mobile deposit does not sign or add instructions anywhere beneath the line that reads, "Do not sign or endorse beneath this line."
There is still hope if the mobile check deposit fails.
The initial payee can use their mobile device to deposit the check into their own checking account and then transfer the money to the third party. This is a complicated but foolproof method of cashing a third-party cheque.
Last but not least, find out if your financial institution will accept the check before attempting to mobile deposit it. The bank could provide further guidelines to assist you in ensuring a successful transaction.
Do I Need a Bank Account To Cash Third-party Checks?
Yes, you can cash third-party checks without having a bank account at any time. However, when you have a bank account, it is often quicker and simpler to cash a check.
The payee's bank, for instance, could be able to process the check more swiftly if you have a certified check that is backed by your own bank because they won't need to check with their bank to make sure there is enough money.
Currency exchanges and a few credit unions are the only places non-account holders can access their money to cash third-party checks.
You might want to open a checking account to avoid any potential problems. Having a checking account has much more advantages than drawbacks.
You can think about opening a joint bank account with your spouse or another trusted family member if you don't want your own checking account.
Where Can I Cash a Third-Party Check Without a Bank Account?
You can cash a third-party check without a bank account at the bank that issued it, at institutions that offer check cashing services, such as gas stations, grocery stores, and department stores, or at an ATM that accepts deposits into pre-paid card or debit card accounts.
A 2-3% fee is typical for this service.
Because the company cashing the check will be most concerned that you are, in fact, the person to whom the check is signed over, you'll need acceptable identification to use all of these alternatives.
Arrive prepared with a driver's license, other state-issued ID, military ID, passport, or other forms of official ID with your photo on it since the bank might require them for verification.
The check should be taken directly to the bank where it was issued if you want to have the highest chance of cashing it without a bank account.
Take your check to a nearby Bank of America location if it comes from that institution. There, a teller will check your account, make sure there are enough funds, and request identification before giving you cash.
In order to identify you in the event of fraud, the bank may also demand you to sign the check's reverse, note your official identity number, and possibly even provide a fingerprint sample.
Taking a third-party check to a check-cashing company or a company that provides check-cashing services is your second-best option for cashing a third-party check without a bank account.
They will charge a fee for the service and need an ID and probably a fingerprint.
What Banks Cash Third-party Checks?
Although banks are not compelled to cash anyone's third-party checks, they do if they believe the transaction to be legitimate.
For a bank, these third-party check cashing transactions are dangerous since they could result in financial loss if it turns out that the transaction was fraudulent.
Having an active, well-maintained checking account with one of the following financial institutions gives you the best chance possible of cashing a third-party check at that institution.
If you don't have an account, be prepared to encounter greater difficulties and high fees when trying to cash a third-party check.
Banks That Will Cash Third Party Checks
Below are some banks that will cash third party checks
- Bank of America will cash a third-party check for an $8 fee.
- BB&T Bank charges $8 to cash a third-party check.
- Chase Bank also charges $8 to cash a third-party check over $50.
- Citibank won’t charge you to cash a third-party check, as long as they are the bank that issued it.
- First National Bank charges a $10 fee to cash third-party checks.
- HSBC Bank does not charge a fee for cashing checks that were issued from their bank, but will charge $3 and up for business checks.
- M&T Bank will take 2% of the third-party check’s value in order to cash it.
- PNC Bank charges $2 for cashing third-party checks over $25.
- US Bank charges $7 for non-account holders to cash third-party checks, but the check must have been issued from this bank. Account holders’ transactions will be free.
- Navy Federal Credit Union will accept third-party checks only if the person has an account there or if both parties are present for the transaction. The transaction is free.
- Chime allows third-party check deposits as long as the check is made payable to the person attempting to deposit it into their Chime account. The account must also be active, having at least $200 in direct payroll deposits within the past 30 days.
Banks That Will Not Cash Third Party Checks
Below are banks that will not cash third party checks.
- Key Bank will not cash a third-party check under any circumstance.
- Wells Fargo Bank does not accept third-party checks.
- Ingo will not accept checks that are not made out to the person attempting to cash them.
- PayPal does not accept third-party checks.
- Arvest Bank does not allow third-party check cashing.
Does Walmart Cash Third Party Checks?
Third-party checks cannot be cashed at Walmart. Walmart accepts pre-printed, cashier's, two-party, payroll, government, tax, 401(k) disbursement, and insurance settlement checks.
Do Check Cashing Places Cash Third-party Checks?
Check cashing places, such as convenience stores, department stores, and markets, and do third-party cash checks. However, some won't cash business or government checks.
Call the check cashing company of your choice in advance to find out if they accept third-party checks and what is necessary for them to do so.
Others may call for two kinds of official picture identification in addition to the need for both parties to be present in order to pay the check.
How Long Does it Take for a Third Party Check to Clear?
Similar to a two-party check, third party checks are also clear. The funds might not be accessible for another five business days after the check has cleared, which should happen in a few business days.
To expedite the procedure or find out the status of a check, call your bank.
When do Third-Party Checks Expire?
Unless otherwise specified on the physical check, a third-party check is valid for about six months from the date of issue. Some checks have instructions that state the check is worthless after 90 days printed right there on them.
However, banks are compelled by law to accept personal and business checks for a period of six months after the date they were issued.
Call the issuing bank to determine if there are any possibilities for cashing your third-party check if it is stale, or over its expiration date.
Frequently Asked Questions
Where can I cash a third party check online instantly?
You can cash your check at Venmo, PayPal, Netspend, Ingo Money app and even though your bank's mobile app.
Can I deposit a third-party check into my chime account?
Yes, you can deposit someone else's check into your Chime account. However, the check must be payable to you to deposit in your Chime checking account. A third-party check made out to cash, a business or anyone else will not be accepted.
Can you cash a third party check at an ATM?
ATM check cashing is one option you may consider to cash your third-party check. However, keep in mind that if you wish to cash third-party checks via an ATM, you would need to have a bank or checking account.
Can you mobile deposit someone else's check?
If you want to deposit a signed-over check without visiting the bank, a mobile check deposit is a good alternative. If the bank allows, you can take a picture of the check and upload it digitally. You can withdraw the money or send cash electronically after that.
How can I cash a check that's not in my name?
Ask the person who the check is from if their bank will allow you to sign a check over to someone else. Check with the person who is depositing the check if their bank will accept a check that has been signed over. If so, sign your name on the back of the check.
Final Thoughts: Cash Third Party Check Online Instantly
A third party checks is a check that has been endorsed or signed by the original payee over to someone else (third party).
Cashing a third party check requires the check to be totally endorsed to the third-party by the original payee. You can cash the check at your financial institution (bank or credit union).
Cashing a third party check online instantly is equally possible thanks to some financial apps (which we've outlined above) offering the check cashing service.