How to Bank a Third Party Cheque: Step-by-Step Guide
Learn how to bank a third party cheque with proper endorsements and requirements for a smooth transaction.
129 views
Yes, you can bank a third party cheque, but it requires the endorsement of the original payee. To do this: the original payee needs to sign on the back of the cheque and write 'Pay to the order of [your name]'. Both you and the original payee might need to be present at the bank to verify the endorsement.
FAQs & Answers
- What is a third party cheque? A third party cheque is a cheque that is written to one person but endorsed to another person for cashing or deposit.
- How do I endorse a third party cheque? To endorse a third party cheque, the original payee must sign the back of the cheque and include a note stating 'Pay to the order of [your name]'.
- Do both parties need to be present at the bank to deposit a third party cheque? Yes, often both the original payee and the person receiving the cheque need to be present for the bank to verify the endorsement.
- Are there fees for depositing a third party cheque? Some banks may charge a fee for processing third party cheques, so it's best to check with your bank for their specific policies.