A third-party check is endorsed with the signature of both the second and third parties. The second party writes instructions on the check in regards to whom is the third party. The second party signs after these instructions. The third party signs the check and can include further instructions. All endorsements must fit within the endorsement field on the check.Know More
The second party includes instructions by writing the words "Pay to the order of" followed by the third party's name. The third party can also include that phrase followed by his bank account information, or he can include any instructions. "For deposit only" is a common instruction to prevent anyone else from cashing the check if it is stolen.
The second party should verify the policy of the check issuer, because some do not allow third-party endorsements. The third party should check with his bank to ensure the bank accepts the check. Third-party endorsements are considered high risk because of the possibility of a forgery. While third-party endorsement is legal, banks choose to accept or reject the checks at their own discretion. The bank may also put the funds on hold for a certain period of time as a precaution. As an alternative option, the second party can cash the check and pay the third party directly.Learn more about Personal Banking
Interested parties can send a JPay money transfer by using the Internet, making the transfer over the phone or visiting any MoneyGram agent location, according to instructions on the JPay website. In some cases, JPay also transfers money by processing money orders sent to the JPay Money Order Lockbox.Full Answer >
Under certain circumstances, you can cash a check made out to someone else. The most common method used to cash a check made out to someone else is to have them sign the back of the check. The payee's signature creates a blank endorsement, allowing anyone holding the check to cash it.Full Answer >
A cashier's check does not have an expiration date and is guaranteed by the issuing bank until the check is paid. The funds of a cashier's check generally must be turned over to the state's unclaimed property custodian after a period of time, according to the state's abandoned property laws.Full Answer >
A dishonored check is defined as a check that has been presented to a banking institution for payment and has been returned to the depositor due to insufficient funds. Dishonored checks are also referred to as bounced checks or returned checks.Full Answer >