Third-party checks are checks that are endorsed by the payee and signed over to another payee, which is the third party. Because of the amount of exchanges and the fear of check fraud, third-party checks face more scrutiny by banks than two-party checks. If you're presented with a third-party check, there are some basic guidelines you should follow to limit any problems associated with depositing the check.
Inspect the check before signing and accepting it. The original payee's name should match on both the front and back of the check. The words "pay to the order of:", followed by your name, should be written on the back of the check; the original payee signs below your name.
Endorse the back of the check below the original payee's signature and above the endorsement boundary line.
Take the check and your personal ID to your bank and deposit the check.
If your bank won't accept the check for deposit, try cashing the check at the payee's bank.
Tips and warnings
- If your bank won't accept the check for deposit, try cashing the check at the payee's bank.