Can you deposit a check for someone else?
Depositing a check for someone else is a financial responsibility you should consider carefully. Two types of deposits that fall into this category are depositing a check not in your name into another person's account and depositing someone else's check into your account. While it is possible to deposit a check for someone else, there are certain rules to be followed. All banks and credit unions have procedural rules and policies for the depositing of someone else’s checks, referred to as "third-party" checks, into your account. There are also rules for depositing someone else's checks into their account on their behalf if they are not able to make the transaction on their own.
Read on to learn more about how to deposit a check for someone else.
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Rules for depositing a check
Credit unions and banks set their own policies on third-party check deposits. A two-party check involves a payer (the person writing the check) and a payee (the person the check is made out to). A third-party check involves the payee (who the check is made out to) endorsing or signing over the check to a third person.
For example, if your spouse receives a check but asks you to deposit it in their account, unless you have a joint account or are named on the account, the credit union or bank may not allow you to deposit the check, even if your spouse endorses the check by signing the back.
How to deposit a check for someone else
Before you deposit a check for someone else into their account or deposit a check with a different name into your own, it's recommended that you call the financial institution into which you want to make the deposit and ask for policy information regarding how to deposit third-party checks. You can also simply ask; can I deposit a check for someone else and can someone deposit a check for me?
Depositing a check into someone else's account
Credit unions and banks do not have to accept third-party checks, and the ones that do will have a policy to follow. Generally, to deposit a check for someone else requires the following:
- Have the payee (the person who is the original recipient of the check) endorse the check by signing the back of the check in the area that has the words, "Endorse Check Here." They may also write their account number on the back of the check.
- If possible, have the person complete a deposit slip that includes their account information.
- As an extra measure, ask the payee to write "For Deposit Only" on the back of their check.
Depositing another person's check into your account
It may be possible to deposit a check payable to another person into your own account. Before you attempt to do so, contact your financial institution, and ask if this is allowed, and if so, what process you should follow.
Most financial institutions will require the following:
- Your identification and account number.
- The payee (the person to whom the check is made out) will need to sign the back of the check in the space that says "Endorse Here."
- Under their signature the payee will write “Pay to the order of [Your Name],” on the back of the check and then sign it.
Drawbacks to depositing a check for someone else
Funds may be delayed. Financial institutions may take more time processing third-party checks to verify the funding source.
Overdraft fees. If the check you deposit is not sufficiently funded by the payee's bank account, and you intend to use the deposited funds to make payments from your account, you could be charged overdraft fees resulting from insufficient funds.
Signing up for
overdraft protection can help protect your account.
Can put unnecessary strain on your relationships. Making financial transactions on behalf of another person requires the utmost trust and confidence between both people. Partners, spouses, friends, and parents and their children should consider their level of comfort with making financial transactions on each other's behalf. A poorly executed transaction could cause financial and personal harm.
Scams. Third-party check scams are on the rise. One common scam affecting job seekers is the "employer" providing a paycheck to a remote working employee. According to the FDIC, the scammer's motive is to get you to cash or deposit the check and send back legitimate money before you realize that the check you deposited is fake. The FDIC and
NCUA protect bank accounts in the event of fraud.
Additional options for depositing someone else's check
There are times when you may be asked to deposit someone else's check into their account. If your partner, parent, child, or friend needs assistance. There are long-term solutions that will make it easier to deposit checks on a regular basis and solutions to be aware of if the check deposit is just a one-time action.
Get added to the account. If you and another person will regularly be depositing checks for each other, you and the other account may opt to add you to their account with deposit or check cashing privileges.
Open a joint account. Two people can open a joint account, which gives both equal access to the account. You'll need to visit the bank together and provide identification to receive authorization.
Peer-to-peer payments. These are typically app-based services, such as PayPal, Venmo and Zelle, that let individuals directly send funds to each other.
Wait. If the payee on the check owes you money, rather than sign the check over to you, the payee can cash the check at their bank and then give you cash or mail you a check payable to you.
Is depositing someone else's check a good idea?
Partners in a relationship who share a bank account or who have a track record of trust with each other's personal account information may be comfortable with depositing checks on each other's behalf. However, whether it's a good idea to deposit someone else's check depends largely on how well you know the person and the level of established trust. For example, adult children and their parents may be comfortable assisting each other by depositing checks.
FAQs
When can you deposit a check for someone else?
You deposit a check for someone else into their account if you have their account information and their endorsement to do so.
Can you deposit a check that's not in your name?
You may be able to deposit a check that's not in your name if the bank allows this type of transaction and the check is properly endorsed as required by the bank.
Can someone else cash my check for me?
Again, this depends on the bank's policy and whether the check is properly endorsed.
How do I endorse a check to someone else for mobile deposit?
If the bank that will be receiving the deposit allows such transactions, you will need to sign the back of the check and write “Pay to the Order of” and the third party's name below your signature.
Can I deposit a cashier's check into someone else's account?
To get a cashier's check you will need to give the bank money for the check amount you need. The bank will generate the check for the amount you requested and paid and make the check payable to your check's recipient. Credit unions and banks will accept a cashier’s check because it has already been paid for.
How do I cash an endorsed check?
Whether or not you can cash an endorsed check depends on the policy of the financial institution where you are doing the transaction
Can I mobile deposit a third-party check?
This will depend on the policy of the credit union or bank. Some prohibit mobile deposits of third-party checks, so be sure to call first and ask about the policy and process for this type of transaction.
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