THIRD-PARTY CHECK CASHING: How and Where To Cash Third-Party Checks

third-party check-cashing

A third-party check is one signed over by the original payee to a second payee. They’re useful as an alternative to cash or bank transfer payments. To ensure the validity of a third-party check, the original payee must sign the back and write “Pay to the order of” and the name of the secondary payee. Banks and credit unions are the best places to cash a third-party check. There are other options for cashing third-party checks if you do not have a bank account. To access funds from a third-party check, you must bring identification. Whether you’ve heard of them or not, keep reading to find out everything you need to know about a third-party check-cashing bank and online app. Take into account Walmart and PayPal third-party check cashing.

What is a Third-Party Check Cashing?

A third-party check cashing begins similarly to any other two-party check. One party compensates another. The payee may decide to designate a third party to receive the funds, in which case they endorse it to a third party. This check is now considered a third-party check.

Reasons to Use a Third-Party Check Cashing

There are several reasons why a third-party check might be used. Some of the most common reasons for using a third-party check are as follows:

  • Debt repayment. Pam owes Jim money. If Jim has a check for the amount owed to Pam, he can sign it over to her.
  • Third-party cashing. Michael signs a check and hands it to Dwight, who cashes it for Michael.
  • Alternative for cash Phyllis wants to give Ryan money but does not have any. She has a check on her, so she signs it over to Ryan instead of handing him cash.

How Does a Third-Party Check Cashing Work?

A third-party check is similar to a regular two-party check. It only takes one more step. First, a check must be exchanged between two parties. Second, the payee must endorse the check for another payee to cash it.

The check can then be cashed by the second payee (or a third party). Individuals, businesses, or entities may be represented by any of the three parties. Follow these steps when mailing a check to someone else to make sure it gets to the right place.

How to Sign a Check for a Third Party

It is simple to endorse a check for a third party. First, ensure that the check is properly written. Then, if the person who gets the checks wants to cash them, he or she should make sure that his or her bank accepts checks from third parties.

All you have to do as the original payee is sign the check on the endorsement line and write “Pay to the order of” and the name of the party to whom you want to transfer the check. The third-party can cash the check after the original payee signs and lists the name of the third party on the back of the check.

In some circumstances, you can write a third-party check to yourself. Simply ensure that you are the authorized signer.

Third-Party Check Cashing App

For third-party check cashing, use the Cash App. The Cash App is one third-party check cashing option available to most people, with or without a bank account. Some popular online banking applications that you may be able to use to cash your third-party check cashing are:

  • Google Pay
  • PayPal
  • Chime
  • CashApp
  • Venmo
  • Zelle (available to customers with a Chase account) 

Customers can use mobile app deposits with an online banking app by taking a picture of their third-party check and virtually cashing it.

Third-Party Check Cashing Banks

Most banks and financial institutions will do third-party check cashing. However, some banks do not accept third-party checks; therefore, before cashing such checks, review your bank’s policies. Some banks that may accept third-party check cashing are:

  • Citibank
  • Bank of America
  • US Bank
  • Chase
  • HSBC
  • Truist (Formerly SunTrust Bank and BB&T) 
  • M&T Bank
  • TD Bank
  • First National Bank of Omaha

You must be an account holder to use a bank’s services when cashing a third-party check. Non-customers are usually unable to cash checks or withdraw funds from a particular bank.

Third-Party Check Cashing Online

In this section, we’ll talk more about the online services and apps that let you cash a check right away from a third party. We’ll show you how to cash a third-party check online and where you can find these services if you don’t have a bank account.

How to Cash a Third-Party Check Cashing Online

Third-party check cashing online is actually much easier than going to the bank. The majority of online third-party check cashing services operate via a mobile app. You’ll need to sign up for the service and link it to your bank account or prepaid card. Then, on the back of the check, sign and write “For Online Deposit Only” beneath your signature. Then, simply follow the instructions provided by your chosen app. Typically, this procedure is straightforward:

  • Take pictures of the front and back of the check.
  • Check the check amount
  • Transfer funds to the proper account
  • Confirm your deposit.

Following that, we’ll go over the most common online check cashing options available to you.

Make use of your bank or credit union’s app

Many banks and credit unions have mobile apps that allow you to take a picture of your check and deposit it into your account right away. Check funds may be held in some cases, but usually only until the next business day.

Deposit your check into your PayPal account

If you don’t have a bank or credit union account, PayPal online checks to cash are your best bet. PayPal also has a mobile app that allows you to deposit checks directly into your account by photographing them with your camera.

Online Check Cashing Services

There are virtual check cashing stores, such as The Check Cashing Store, if you do not have a bank account or an online spending account. In general, you should avoid this option whenever possible. It’s not the most convenient way to access your money when compared to your bank or a PayPal account, and the fees can quickly deplete your check.

Online check cashing is a quick and secure way to deposit checks directly into your bank accounts. Don’t pass up the convenience of online banking. Even if you don’t have a bank account, you have several options.

Walmart Third-Party Check Cashing

People often want third-party checks to be cashed, but most institutions don’t like to do this. Because Walmart is easy to get to and has more than 4700 locations across the country, you may be wondering if Walmart accepts third-party check cashing. Here’s what I discovered!

Does Walmart do Third-Party Check Cashing In 2022?

Due to the higher risk of fraud with these checks, Walmart will no longer accept check cashing from third parties after 2022. Instead, Walmart customers can do third-party check cashing at banks or credit unions. It should be noted that you will be required to pay fees and present a valid photo ID.

Continue reading to learn more about why Walmart does not offer third-party check cashing, which banks and stores do, and what fees you must pay for it.

Why Does Walmart Not Cash Third-Party Checks?

Third-party checks differ from standard checks in that the original recipient names a second recipient who will receive the cash or deposit the check’s amount. The first recipient does this by writing down the name of the second recipient and obtaining their signature.

However, the chances of fraud with these types of checks increase significantly when the check changes hands multiple times. Check-cashing services frequently accept these checks, only to discover later that the check did not reach its intended recipient.

As a result, none of Walmart’s stores accept third-party check cashing. Only two-party checks are accepted.

Paypal Third-Party Check Cashing

Third-party check cashing is not permitted by PayPal. For a limited time, checks deposited to PayPal must be either a two-party check or an electronic funds transfer. PayPal accepts checks, which are deposited as cash into a PayPal account. PayPal will not deposit a third-party check cashing even if someone else has signed the back of the check to a third party.

Where Can You Cash a Third-Party Check Cashing?

This question has several possible answers. A third-party check can be cashed in many of the same places as a regular check. However, some establishments do not accept third-party checks. Third-party checks can be cashed at one of the four locations listed below.

#1. Bank or credit union

Third-party checks are best cashed at banks or credit unions. You may even be able to cash a third-party check at a financial institution that you do not belong to. If you do this, you may be required to pay a fee. It is important to note that not all banks accept third-party check cashing.

Currently, the following banks and credit unions accept third-party check cashing:

  • Citibank
  • Navy Federal Credit Union (only when deposited to a business account)
  • Bank of America
  • Chase Bank
  • HSBC Bank
  • US Bank
  • Chartway Federal Credit Union
  • Connexus Credit Union
  • First National Bank

Among the banks and credit unions that do not currently accept third-party check cashing are:

  • Wells Fargo
  • Discover Bank
  • Allied Federal Credit Union
  • Citizens Bank
  • PenFed Credit Union

#2. ATM

Some establishments only accept third-party check-cashing in person. Some, however, allow you to cash third-party checks at their ATMs, though only current account holders are eligible. Check with your local bank to see if you can cash a check from a third party at an ATM.

#3. Online banking

You might be able to cash third-party checks using your smartphone. Some banks and credit unions accept third-party checks through their online banking systems. In fact, some mobile apps let you cash third-party checks without a bank account.

Keep the check you submitted with your application until the institution confirms it cleared. You may be able to cash third-party checks using the following mobile check-cashing services:

  • Chime
  • CashApp
  • Zelle (requires use by enrolled customers only) 
  • Google Wallet

#4. Check cashing establishments

Check cashing services or currency exchanges can assist you in cashing a third-party check. Unfortunately, not all check-cashing establishments provide this service. Here are a few examples:

  • Check into cash
  • Money mart source
  • ACE cash express
  • Advanced Financial
  • Check-cashing store

How long does it take to cash a third-party check?

Most checks clear in two business days. Checks may take longer to clear depending on the amount of the check, your relationship with the bank, or if it is not a regular deposit. When the funds become available, you will receive a receipt from the teller or ATM.

What app will cash a third-party check?

To Cash a Third-Party Check, Use Cash Apps:

  • PayPal.
  • Chime.
  • CashApp.
  • Venmo

Can you deposit a third-party check at an ATM?

You should be able to deposit a check at the bank if the third party has signed the check and agreed to “pay to the order of your name,” but you may not be able to use an ATM. Even if the ATM accepts the check, the bank may need more information before the funds are released to prevent fraud.

What do you do with a third-party check?

One option is to have someone else sign the check. Because the check is currently payable to you, you must ensure that the third party and their bank can accept a signed-over check, also known as a “third-party check,” and endorse the check by signing the back of it.

Can I deposit a third-party check into my Cash App?

A few conditions must be met before you can deposit a check with Cash App: the check must be made out to you, the same person as the Cash App account, or jointly with an approved person.

Can I electronically deposit a 3rd party check?

Customers can use mobile app deposits with an online banking app by taking a picture of their third-party check and virtually cashing it.

What app will cash a check instantly?

With the Ingo® Money App, you can cash paychecks, business checks, personal checks, and almost any other type of check at any time and from any location. You’ll have your money in your bank, prepaid card, or PayPal account in minutes.

Does Walmart cash personal checks?

Simply go to the Walmart Money Center, or customer service desk, and have your personal check cashed quickly. To cash checks at Walmart, you do not need to register ahead of time or have a Walmart credit card.

Frequently Asked Questions

What's the easiest way to cash a third-party check?

Banks and credit unions are the best places to cash a third-party check. Third-party checks can also be cashed at a check-cashing store, ATM, or mobile app. It is important to note that not all financial institutions accept third-party checks. A bank account is not required to cash a third-party check.

How can I cash a check that is not in my name?

Check with your bank or the bank that issued the check to see if you have any documents that will suffice as identification. As a last resort, hand over the check to someone you trust and ask them to cash it. This results in the creation of a third-party check.

Where can I cash a third-party check online instantly?

Best Third-Party Check Cashing Apps

  • Brink’s Money Prepaid
  • Ingo Money
  • Venmo
  • PayPal
  • Lodefast
  • ACE Flare
  • NetSpend

How do you cash a third party check without the other person?

Collect two forms of photo identification. The most important aspect of cashing a third-party check without a personal account is proving you are the person whose name is written on the check. In order to do so, the bank or check cashing location will usually require at least two forms of picture identification.

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