Instructions and Problems With Signing a Check Over
Can You Sign a Check Over to Somebody Else?
When a check is payable to you, you’re the only person who can do anything with it. If you don’t want to cash a check yourself or depositing the check is not an option, you might be able to sign the check over to somebody else. That person would then deposit into their account or get cash.
How to Do It
To sign a check over to somebody else or to a business, verify that a bank will accept the check, then 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, pass the check on to that person so they can deposit or cash the check.
Will the Bank Allow It?
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. They may have policies against this practice or they may think that a third-party check is a red flag, so they’ll refuse to deposit or cash the check.
Ask before you endorse: If you insist on signing a check over to somebody else, have them check with their bank before you endorse the check.
You don't want to add extra signatures and names to the back of the check (which will create confusion and delays at the next place you try to cash the check). Find out if it’s allowed and what the requirements are.
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. They can’t verify your identity or your signature—they just have to take the third party’s word for it.
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 (or the first $5,000 if it’s 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, open 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.
Exploring Checking Account Options
If it’s simply not an option to open a bank account, you could try a check-cashing service, but those fees are typically quite high. Several retail stores have been known to cash checks for free, especially tax refund checks.
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 options might make your life easier:
- Mobile check deposit: This allows 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 customers, 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
If 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 and your good standing at the bank 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 doing a favor.
Your account will go negative, or the funds will be taken from your balance if it's a bad check. You can try to collect funds from your friend, but this is often difficult. Also, never agree to cash a check for a stranger, because it'll likely be a scam.
Don't Get Scammed
How can you lose money by helping somebody? Your bank will often allow you to get cash from a check immediately, or the funds will show up 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 bogus, so don’t hand over cash unless you really trust the person you're helping.
Unfortunately, if you cash a check for somebody else and the check is bad, your bank will not reimburse you.
You'll have to ask that person—if you can find them—and possibly bring legal action to collect the money.
Huntington. "How to Sign/Endorse a Check Over to Someone Else." Accessed Feb. 6, 2020.
Citizens Bank. "Third Party Sign Over?" Accessed Feb. 6, 2020.
Citibank. "Client Manual Consumer Accounts," Page 32. Accessed Jan. 9, 2020.
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?" Accessed Jan. 9, 2020.
Consumer Financial Protection Bureau. "CFPB Takes Action Against Check Cashing and Payday Lending Company for Tricking and Trapping Consumers." Accessed Jan. 11, 2020.
Kmart. "Check Cashing." Accessed Jan. 11, 2020.
CO-OP Financial Services. "CO-OP Shared Branch." Accessed Jan. 11, 2020.
Consumer Financial Protection Bureau. "Understand the Fees You Will Pay." Accessed Jan. 11, 2020.
Consumer Financial Protection Bureau. "How to Spot, Report and Avoid Fake Check Scams." Accessed Jan. 11, 2020.