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Difficulty with Third Party Checks

How can I find out what banks in my area will accept third party checks?


If "A" writes a check to "B" and "B" signs that check over to you, you want to cash it. Your bank may have a very difficult time verifying that "B" did in fact endorse the check. That is why banks are hesitant to accept these items.

If you have banked with your bank for a long time and you have a good relationship with them (strong deposits), then they may. It is up to each bank, but because of the risk mentioned above, many won't want these checks. It is worth mentioning that policies can change. A bank that is accepting them today, may suffer a loss and stop accepting them tomorrow. Your best bet is to speak with an officer or supervisor at the bank and explain what you need, why and how often this will occur. They may or may not want the account.

Published on BankingQuestions.com 6/30/08