Most banks no longer accept third-party checks at all
A third-party check is one made out to someone else that you're trying to deposit or cash. For example, your employer writes a check to "John Smith," but John signs it over to you and you try to cash it. Most major banks stopped accepting these checks years ago, and the ones that still do have strict limits on when and how.
The reason is straightforward: third-party checks create fraud risk. The bank can't easily verify that the person who signed the check over to you actually authorized it, or that the signature is real. If the check bounces or turns out to be forged, the bank is liable. So they've largely decided the liability isn't worth it.
If you have a third-party check, your best option is usually to ask the original payer to write you a new check in your name, or to deposit it into a joint account with the person it's made out to. If neither of those works, read on.
Key Takeaways
- Chase, Bank of America, Wells Fargo, and Citibank do not accept third-party checks under any circumstances.
- Some regional and community banks still accept them, but usually only if both the original payee and you are account holders at that bank.
- Credit unions vary widely—some accept third-party checks from members, others refuse them entirely.
- Check-cashing services and some grocery store customer service desks will cash third-party checks, though they charge a fee and may require ID from both parties.
- The safest path is to ask the original payer to issue a new check in your name instead.
What the major banks' policies actually are
Chase, Bank of America, Wells Fargo, and Citibank all have explicit policies against third-party checks. They will not deposit or cash them, period. If you walk into a branch with one, they will tell you no. If you try to deposit it through mobile banking or an ATM, it will be rejected.
US Bank and PNC Bank also do not accept third-party checks. TD Bank does not either. If you bank at any of these institutions, a third-party check is not an option.
The policy exists across all account types—checking, savings, money market. It doesn't matter if you've been a customer for 20 years or if the check is for $50. The answer is no.
Regional and community banks that may still accept them
Smaller banks and credit unions have more flexibility than the national chains, and some still accept third-party checks. However, the conditions are usually strict: both the original payee and you must be account holders at that bank, and the original payee must endorse the check in front of a teller.
You cannot find this out from a website. Call your bank's main line and ask to speak with someone in deposits or operations. Tell them you have a third-party check and ask whether they accept them and what documentation they need. Be specific about whether both parties have accounts there.
Even if your bank says yes, they may limit the amount—some banks cap third-party checks at $500 or $1,000. Ask about that too. And expect the deposit to take longer than a normal check; some banks hold third-party checks for 10 business days or more.
Credit union policies vary significantly
Credit unions are not uniform on this. Some accept third-party checks from members without much fuss. Others refuse them entirely. A few accept them only if the original payee is also a member.
If you belong to a credit union, call and ask directly. The answer depends on that specific union's risk tolerance and fraud history, not on a national standard. If they do accept them, ask whether both parties need to be members and whether there's a dollar limit.
Check-cashing services and retail options
Check-cashing stores will cash third-party checks, and they don't require either party to have an account there. They will ask for ID from both the original payee and you. They charge a fee—typically 2 to 5 percent of the check amount, sometimes more. On a $500 check, that's $10 to $25 out of your pocket.
Some grocery stores with customer service desks—Walmart, Target, and some regional chains—will also cash third-party checks. The fee is usually lower than a dedicated check-cashing store, often $3 to $5. Again, they'll need ID from both parties.
Walmart's policy, for example, allows third-party checks up to $200 with ID from both people. Target's limit is $500. These limits and fees change, so call ahead or ask at the desk before you go.
What you need to do to make it work
If you're going to attempt a third-party check anywhere, the original payee must sign the back of the check and write "Pay to the order of [your name]" above their signature. Some places also require the original payee to write their account number or ID number on the back. You then sign below that.
Bring ID for both people. The original payee should bring their ID too, even if they're not going into the bank or store with you—some institutions will call them to verify. If the check is large or the names don't match perfectly, expect questions.
Do not write anything else on the check. Do not cross out or alter the original payee's name. If the check is damaged or the signature is unclear, most places will refuse it.
Why asking for a new check is almost always better
The simplest solution is to ask whoever wrote the original check to write you a new one in your name instead. This takes them five minutes and costs them nothing. Most people will do it without hesitation if you explain that your bank won't accept third-party checks.
If the original payer is a business or government agency, call their accounting or payments department and explain the situation. They can usually reissue a check quickly. If it's a personal check from someone you know, just ask them directly.
This avoids fees, avoids delays, avoids the risk that the check will be rejected, and avoids having to coordinate with another person at a check-cashing location. It's the path with the fewest moving parts.
Frequently Asked Questions
Can I deposit a third-party check through mobile banking or an ATM?
No. Mobile deposit and ATM deposit systems automatically reject third-party checks because they can't verify signatures or the endorsement. You would have to go into a branch in person, and even then, most banks will refuse.
What if the original payee is deceased or unavailable?
You cannot cash or deposit a third-party check if the original payee cannot sign it. If they're deceased, the check belongs to their estate. You would need to work with the estate's executor or attorney. If they're straightforward unavailable, ask the original payer to issue a new check in your name.
Will a bank accept a third-party check if I have the original payee sign it in front of a teller?
Some regional banks and credit unions will, if both of you are account holders. Most major banks will not, regardless. Call your bank first to ask whether they accept third-party checks under any circumstances before you ask the other person to come in.
Do I need the original payee's permission to deposit their check?
Yes. They must sign the back of the check endorsing it to you. Without their signature, you cannot legally deposit or cash it. If they refuse to sign it, the check cannot be used by you.
Is there a dollar limit on third-party checks?
It varies. Check-cashing stores typically have no stated limit but may refuse very large checks. Retail locations like Walmart cap them at $200 to $500. Banks and credit unions that accept them often have their own limits. Ask before you try to deposit.