Can a Third Party Withdraw Cash from a Cheque? Discover the Process
Learn how third parties can cash cheques through endorsements, ensuring a smooth transaction.
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Yes, a third party can withdraw cash from a cheque, provided it is an endorsement cheque. The original payee must endorse the cheque on the back by signing and writing 'Pay to the order of' followed by the third party's name. The third party then presents the endorsed cheque and their ID at a bank to withdraw the cash.
FAQs & Answers
- What is an endorsement cheque? An endorsement cheque is a cheque that has been signed on the back by the payee, allowing it to be transferred to another person or entity.
- Can anyone withdraw cash from an endorsed cheque? No, only the third party whose name is written on the cheque can withdraw cash from an endorsed cheque after presenting valid identification.
- What identification does a third party need to withdraw cash? A third party needs to provide valid identification, such as a driver’s license or government-issued ID, when presenting the endorsed cheque at the bank.
- Is there a fee for cashing an endorsed cheque? Fees may vary by bank; some banks charge a fee for cashing cheques for non-customers, while others may not.