Have a third party check and don’t know where to cash it?
Most banks in the US have difficulty cashing third party checks. However, there are a few options that allow you to cash third party checks.
Fortunately, we have listed banks that accept third party checks. This article also contains important information you should know before withdrawing third party checks. So, without further ado, let’s get started!
Additional reading: 5 ways to cash a check without ID
First things first: understanding third-party checks
Before considering options for cashing these checks, you need to know what “third party checks” mean.
Unlike standard bilateral checks, third party checks confirm payment to additional payees. To make this transaction, the payer must write his credentials on a check and give it to the payee.
An insurance claim is a good example of a third party check. For example, an insurance company sends you a check for car repairs. If you cash this check directly and use the funds to pay for the repair, it becomes a standard bilateral check.
However, when you sign and hand over the check to pay the mechanic’s service charges, the check becomes a third party check.
Cashing Third Party Checks: Requirements
Most banks refrain from cashing third party checks due to the risk of fraud. To mitigate theft and fraud, financial institutions offering third-party check acceptance have the following requirements:
approval
Institutions that accept third party checks require this third party check to be genuinely authorized and require credentials from both parties. Ideally, you should endorse a check in front of a teller or employee.
Using a mobile banking app or ATM may result in your request being denied. Be sure to talk to your bank about properly endorsing the check to avoid having your application rejected.
Identity
ID is also a mandatory requirement when checking third party checks. In most cases, a government-issued photo ID will work, but ID requirements may vary by bank.
Your bank may also ask you to see the check in person. To increase your chances of cashing a third-party check, your best bet is to take it to the institution that originally issued the check.
Citibank
Citibank is a prominent bank with over 600 branches and 2,300 ATMs nationwide. Citibank also has approximately 60,000 fee-free ATMs in its network, giving customers access to financial institutions anywhere in the country.
Citibank, one of the country’s leading banks, accepts various types of checks. Whether it’s a government check, an insurance claim or a cash teller’s check, Citibank accepts them all.
However, when discussing acceptance of third party checks, Citibank has imposed some requirements on its process. The first clause restricts non-customer cash holders to writing checks issued by Citibank only.
Another requirement for withdrawing checks from Citibank is that account holders can only cash available checks up to the balance of their checking account. Citibank also requires the payee to guarantee the endorsement of the check.
Fees are waived when cashing third party checks as a Citibank customer. This limit is much broader than his $5,000 limit for bank non-account holders.
look: How to Cash or Deposit Canadian Checks at US Banks
PNC
PNC Bank is renowned for its superior digital banking tools and competitive interest rates in select US states.
PNC Bank allows third-party checks to be cashed on its premises, but also has some requirements to negate major fraud and theft offenses. Banks require that both parties present valid photo identification in order to cash third party checks.
PNC Bank also does not charge any fees to account holders. However, for non-account holders, the bank’s fee structure is different. There is no fee for checks under $25, but PNC Bank charges 2% or $2 of the total amount.
If 2% of the amount is over $2, the bank charges that amount as a fee. However, if you meet the requirements, PNC Bank can run a seamless process and conveniently cash your checks.
US bank
With convenient policies and low fees, US Bank is another ideal choice for cashing third party checks.
Bank policy allows customers to cash or deposit third party checks in person at any bank branch. However, US Bank, as a non-customer, can independently withdraw only checks issued by third parties.
Non-customers must also pay a $7 fee when cashing a third party’s check. This fee increase also applies to other checks, including cash, personal checks, or other similar checks. So if your check is large, the $7 fee can be a bit of a hassle.
bank of america
Known as one of the world’s leading financial institutions, Bank of America also strives to make it easier for US residents to cash third-party checks.
Nonetheless, Bank of America has fairly strict requirements and policies for cashing third party checks. Staff will process third-party check cashing and deposits on a case-by-case basis.
Approval for cashing third party checks is at the discretion of the selected branch manager. Additionally, Bank of America requires the presence of both parties when depositing third party checks.
Bank of America is the best choice if you have an account here. However, Bank of America only allows third party checks to be cashed at certain branches. Therefore, before going to your nearest branch with a third party check, always call ahead to see if this service is available.
There is no charge for cashing third party checks for bank customers, but the Bank does not offer any benefits to non-customers. As a non-customer who cashes a third party’s check, Bank of America will charge $8 if the check’s value is greater than $50 for him.
The last word
Many banks in the country allow third party checks to be cashed. However, the fees and requirements of many banks can be daunting. The banks listed above are ideal banks for cashing third party checks.
Not only do these banks have minimum requirements, but their fee markups are also very low, making it convenient to cash your checks.
However, the best way to cash third party checks is to use the bank where you have your account. Using your own bank avoids the associated fees and simplifies the entire process.
We hope we have covered the requirements and information to help you understand all the potential details of third party checks and find the right bank.
Others were interested in:
How many houses can you buy with a salary of $50,000?
7 ways to get legal roadside assistance cheaply
What time does Wisely Direct Deposit start?
Hi, I’m Ashley, a freelance writer with a passion for personal finance. From a young age, I have been fascinated by the power of money and how it shapes our lives. Over the years, I’ve learned everything I can about budgeting, saving, investing, and planning for retirement. So if you’re looking for tips, advice or just a little bit of inspiration to help you on your financial journey, you’re in the right place. I am always happy to help. I am happy to share my passion for personal finance with you.
