Instructions and Problems With Signing a Check Over

Can You Sign a Check Over to Somebody Else?

Image shows three figures with arrows pointing from one character to the next and the endorsement area on the back of a check. Text reads; How to Sign Over a Check. Friend 1, The person writing the check. You, the person signing the check over. Friend 2, the person depositing the check. Ask friend A’s bank if they will allow you to sign the check over to friend B. Ask friend B’s bank if they will accept a check signed over to their customer. In the endorsement area on the back of the check, write “Pay to the order of” and then include the full name of friend B. Endorse the check with your signature.

The Balance

When a check is payable to you, you’re the only person who can do anything with it. You can potentially sign the check over to somebody else (so they can cash it or deposit it), but that practice has several pitfalls. When all goes well, though, another person can use a check that's made out to you.

Key Takeaways

  • Some banks will allow you to sign a check over to someone else, also known as a "third-party check."
  • To sign a check over to someone else, sign the back of the check and, depending on the receiving bank's rules, you'll have to write "Pay to the order of: Name" or have the recipient sign their name under yours.
  • Always check with the recipient's bank to make sure it will accept a third-party check.
  • Be way of deposition a check on someone else's behalf; you are liable for the check's funds if it bounces.

How to Do Sign a Check to Someone Else

To sign a check over to another person or to a business ("third-party check"), verify that a bank will accept the check. If you get approval, endorse the back of the check by signing it. Some banks require you to write "Pay to the order of [person's first and last name]" under your signature, and others only require the person who is depositing it to sign their name under yours. Next, provide the check to that person so they can deposit or cash the check.

Will the Bank Allow a Third-Party Check?

Banks might not be willing to accept checks that have been signed over to a third party (that is, somebody besides the check writer and the original payee). It’s perfectly legal to try, but banks aren’t required to honor your instructions. Banks may have policies against this practice. Also, they may think that a third-party check is a red flag, so they might refuse to deposit or cash these checks.

You don't want to add extra signatures and names to the back of the check (which can create confusion and delays at the next place you try to cash the check). Find out if it’s allowed first, and learn what the requirements are. And always check with the recipient to make sure their bank accepts third-party checks.

Things might go more smoothly if you go to the bank with the person depositing the check so the bank has more confidence that nothing fishy is going on. (Bring ID, of course.)

Banks are essentially giving your money to somebody else when you use this approach. Unfortunately, the risk is often too great for them to accept. When a bank can’t verify your identity or your signature, they just have to take the third party’s word for it.

Alternatives to Writing a Third-Party Check

Signing a check over to somebody is not an ideal solution, and sometimes it’s simply not an option. The strategies here might be slower than endorsing a check to someone else, but at least you can be confident that they’ll work.

If You Have a Bank Account

If you need to pay somebody with money you’ve received by check, try cashing or depositing the check yourself to avoid any hassles. The first $200 of funds will typically be available from a check within one business day, and that number goes up to $5,000 (depending on your bank) if you're depositing a cashier's check. There are numerous ways to send money online for free, and those methods might be a lot easier than dancing around bank policies.

If You Don't Have a Bank Account

If you don't have a bank account or any other way to handle checks, consider opening an account. Some types of bank accounts can cost money, but not having an account probably costs you more—in both time and money. There are several ways to get free checking accounts, especially at local credit unions and online banks:

If It's Difficult to Get to Your Bank

If your bank doesn't have a branch or ATM where you are, or it's inconvenient for you to get there, these two solutions might make your life easier:

  • Mobile check deposit: Your bank might allow you to take a picture of a check—often until late into the evening for a same-day deposit. Then you can withdraw cash or send money electronically.
  • Credit unions: If you're a credit union customer, then you might be able to use branches of other credit unions (assuming they participate in the shared branching network).

If You Want to Pay Without Cash

When your bank doesn’t offer mobile deposit, or you’re looking for an inexpensive solution, prepaid debit cards might meet your needs. Just be wary of high-fee cards; prepaid providers are required to disclose all fees to you before you purchase a card.

If you’re trying to pay without cash because you’re concerned about theft (in the mail, for example), write a check or pay with a money order instead.

Depositing a Check for Somebody Else

If somebody asks you to deposit a check written to them, think carefully before you do so. You are risking your own money if you agree. If the check bounces for any reason, your bank will demand that you replace the funds, even though the check was written to your friend—or by somebody else entirely—and you were just trying to do somebody a favor.

If you deposit a bad check, the funds will eventually be taken from your balance. You can try to collect funds from your friend, but this is often difficult. The bank may take further action, including freezing or closing your account.

Also, never agree to cash a check for a stranger, because it'll likely be a scam. How can you lose money by helping somebody? Your bank will often allow you to get cash from a check immediately, or the funds appear in your available balance, making it look like you can spend all of that money if you want to.

Later, your bank actually processes the check and tries to collect money for it. It can take days or weeks for your bank to find out that a check was bad, so don’t hand over cash unless you really trust the person you're helping.

You'll have to ask that person—if you can find them—and possibly bring legal action to collect the money.

Frequently Asked Questions (FAQs)

Where do you sign a check?

Someone writing a check will sign on the designated signature line at the bottom right-hand side of the front of the check. If you've received a check and you want to sign it over to someone else, then you sign on the back of the check in the section designated for endorsements.

How do you deposit a check?

You have many options for how to deposit a check. You can go into your bank and deposit it directly with a teller. Depending on your bank, you may be able to deposit a check at an ATM. Many banks have mobile apps that allow you to deposit a check by taking a picture of it with your phone. You may even be able to mail your check to your bank to deposit, but this method would take much more time than the other options.

How long does it take for a check to deposit?

It takes about two days for most checks to deposit, but it depends on the amount being deposited, the banking institution in question, and your history as a banking customer. The first $200 from any check is typically made available the next business day.

Article Sources

  1. Huntington. "How to Sign/Endorse a Check Over to Someone Else."

  2. Citi. "Client Manual—Consumer Accounts," Page 32.

  3. Consumer Financial Protection Bureau. "How Quickly Can I Get My Money After I Deposit a Check Into My Checking Account? What Is a Deposit Hold?"

  4. Citibank. "Client Manual Consumer Accounts," Page 27.

  5. CO-OP Financial Services. "CO-OP Shared Branch."

  6. Consumer Financial Protection Bureau. "Understand the Fees You Will Pay."

  7. Greater Texas Credit Union. "How To Endorse & Deposit Someone Else's Check."

  8. Consumer Financial Protection Bureau. "How to Spot, Report and Avoid Fake Check Scams."