Instantly Cash 3rd Party Checks Easily [Guide]
In this day and age, where instant bank transfers are making millions of people’s lives easier every day, payments made by check can already seem like a lot of unnecessary hassle.
However, things get even more complicated when it comes to 3rd-party checks as 3rd-party checks can be difficult to cash, especially when you need to do so quickly due to the requirements that have to be met to cash them.
In this article, we will be providing an overview of what 3rd-party checks are, how they work, and how you can cash a 3rd-party check to get your money as soon as possible — generally the same day for most banks.
Despite it being possible to cash a 3rd party check we’d say it’s generally better to refuse a 3rd party check and demand can or a check from the other persons account directly if you’re not family or don’t trust each other VERY well.
Table Of Contents
What Is A 3rd Party Check?
If you don’t know what a 3rd-party check is, it’s basically a two-party check that is endorsed to another person (the 3rd party).
One person (the 1st party) might write a check to another person (the 2nd party) in order to give them some money. That part is simple enough, and usually, the 2nd party would simply cash the check. However, a 3rd-party check refers to a check that is endorsed to a 3rd party by the 2nd party so that the 3rd party can cash it instead.
Why might someone endorse a check to someone else? Well, there could be any number of reasons.
For example, say someone has given you a check, and you need to buy something with it immediately – the problem being that you don’t have time to wait for the check to clear. You might decide to borrow the same amount in cash from a friend or family member to make your purchase and endorse the check to them so that they can then cash it and get their money back. This is just one of many reasons why people end up with 3rd party checks.
How To Cash A 3rd Party Check Instantly
Cashing a 3rd-party check can often take some time. This is not because they take longer to clear than regular 2-party checks, but rather because there are usually extra security steps required to ensure that no fraud is taking place.
Ensure The Check is Endorsed Properly
The most important thing you should do before attempting to cash your 3rd-party check is to make sure it is fully and properly endorsed. You should do this before the person endorsing the check leaves your side, as if they do it incorrectly you’ll be unable to cash the check.
If you are the 3rd party in the equation, you will not be able to cash a check with someone else’s name on it simply by explaining that the named party has agreed to endorse the check to you. Usually, endorsing a 3rd-party check involves the endorsing party signing the back of the check and writing the recipient’s name under the heading ‘pay to the order of’. This officially confirms the endorsement.
It’s important to note that different banks may have different processes for endorsing 3rd-party checks, though. While the above process is standard, your bank might have different requirements. That’s why it’s important to read the instructions on the back of the check before attempting to cash it. This will save you time that might be wasted if you complete the endorsement incorrectly and have to start again.
Call Your Bank Ahead Of Time
In the same vein as reading the instructions on the back of the check, it’s a good idea to contact your bank beforehand to ask what forms of ID they need and for which parties. The reason this is so important is that different banks have different policies and security requirements when it comes to cashing 3rd-party checks, so it’s best to confirm what is needed before you make the trip.
After all, you don’t want to turn up at your bank only to be told that you haven’t brought the right kind of ID or that you haven’t endorsed the check correctly.
Visit The Bank In Person
Once you have ensured that the check is officially endorsed and that you have all the forms of ID required by your bank for 3rd-party check processing, you should visit your bank in person to cash the check.
Visiting your bank in person is the best way to ensure that your check can be cashed quickly.
Even though you might be thinking that there are faster (remote) ways to cash checks these days, this is usually not the case with 3rd-party checks because there is a greater risk of identity theft and fraud with this kind of check. If you visit the bank in person you avoid lots of these potential issues and generally it still only takes a short 5-10 minute visit to the bank to get the check cashed — basically instantly.
Cash The Check (ATM or Teller Window)
We don’t recommend trying to use an ATM for cashing 3rd-party checks the vast majority of the time, simply because most banks won’t allow it. If you try to cash the check via a mobile app, the worst that will happen is that it won’t go through, but if you deposit the check into an ATM, and it can’t be processed, you will have to wait for the check to be mailed back to your address before you can try to cash it again, which obviously isn’t ideal if you’re trying to cash the check quickly.
However, a select few banks will allow you to deposit your 3rd-party check into an ATM or cash it through a mobile app. You should do your research beforehand to check whether this is the case with your bank. If (and only if) your bank clearly states that it allows 3rd-party checks to be deposited in this way, then it may be the fastest way to get access to your money.
With that being said it only takes 5 minutes to go inside and talk to someone at the teller window to get the check cashed for you — so long as you have done your due diligence and have the endorsement done properly you should be able to walk out with cash just minutes later.
Final Thoughts & Conclusion
As mentioned above, there are essentially two ways to cash 3rd-party checks:
- visiting the bank in person
- using an app like PayPal, Netspend, or Green Dot.
The first option is the best choice in 99% of cases because most banks need to see ID and do extra security checks before they can allow a 3rd-party check to be cashed. This isn’t possible if you deposit your check via an app or ATM, which is why most banks don’t cash 3rd-party checks this way. However, if your bank is one of the few that allows mobile or ATM deposits of 3rd-party checks (you should contact your bank and verify this beforehand), the fastest way to cash a 3rd-party check is to scan it through a compatible app or use an ATM.
Frequently Asked Questions
Below we’ll go over the FAQ’s we’ve been asked, or encountered, or even had asked ourselves about cashing 3rd party checks — If you have other questions feel free to contact us and we’ll get back to you as soon as we can — and likely even add our answer down below.
Where Can I Deposit 3rd-Party Checks?
You can deposit 3rd-party checks at many of the same places as you can deposit regular checks. Although the surest way of depositing a 3rd-party check successfully is to visit your bank in person, you can also deposit these checks at your credit union. Some banks may allow you to deposit 3rd-party checks by ATM or via a mobile app
. You shouldn’t assume that you can deposit 3rd-party checks without in-person interaction, however, as most banks require ID to complete the process.
Can You Cash A 3rd-Party Check Without The Other Person?
Sometimes, banks will require the IDs of both the 2nd party and the 3rd party when cashing a 3rd-party check. In this case, the other person will probably need to be present in order to provide identification. However, in some cases, the 3rd party can cash the check with the written endorsement from the 2nd party on the back of the check and 2 forms of photographic ID for themselves.
You should contact your bank ahead of cashing the check to familiarize yourself with their policy.
What Apps Cash Checks Immediately?
There are several apps that you can use to cash checks more or less immediately, including PayPal, Netspend, and Green Dot. However, the vast majority of banks will not allow you to use these apps to cash 3rd-party checks due to the increased need for security checks and identification when someone is endorsing a check to another person.