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The Curious Bag
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Third-party checks are those signed over, or endorsed, by the payee (person to whom the check is originally written) to another individual or entity. These often run into verification problems.
Most Likely Choice
Banks are the best bet for cashing a third-party check. However, bank policies on check cashing differ. Some banks do not mind cashing a third-party check, but many will refuse.
Policies
Banks are usually willing to cash third-party checks from very respectable customers of the bank, such as companies that frequently cash employee checks or businesses that offer check-cashing services.
Difficulty
Banks tend to regard third-party checks with suspicion because while the final endorser may hold an account with the institution, the bank likely knows nothing about the original endorser.
Other Avenues
If a bank refuses to cash a third-party check, you can try cashing it at a payday loan company. In addition, some government treasury offices will cash third-party checks, but this is unusual.
Tips
If you are trying to cash this type of check, make sure it contains the signature of the payee and the third party. If you make a deposit, your bank is more likely to accept the third-party check.
Source:
Ukrainian Federal Credit Union
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