How to Cash a Third Party Check

Third party checks are ones where the original payee has signed the check over to someone else, known as the “third party.” (The first party is the person with the money who wrote the check and the second party is the original payee or recipient of the check)

You can tell when a check is third party because the payee has signed something like “Pay to the order of” along with the third party’s name on the back. The payee then signs their name under that and finally the third party signs their name on the last line. If you are the third party, you should not sign until you are actually cashing the check.

Third party checks are more challenging to cash because they are considered more risky and prone to fraud. Generally, the most reliable way to cash a third party check is to take it to the issuing bank or credit union. However, most banks charge a fee if you are not an account holder and the issuing bank may not be convenient for you to visit.

For the check cashing stores that do accept third party checks, you generally need to have both parties present to verify their signatures. Other stores may do verifications by phone. Fees may also differ with third party checks as opposed to standard two party checks. You may find some check cashing locations that won’t cash these types of checks at all. In addition, many grocery and convenience stores that cash checks may not cash third party checks. Use our directory to find a check cashing store near you and ask about their policy on third party checks.