Can you deposit someone else’s check in your account?

Your parents wrote a check to your child for his birthday. A neighbor wrote a check in your husband’s name. A friend owes you money and wants to give you their latest paycheck as payment.

Whatever the case may be, there are some scenarios where you may need to cash a check written to someone else. Can you deposit someone else’s check in your checking account? It’s possible under some circumstances, but the rules are strict.

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Understanding the laws surrounding check deposits

Banks and credit unions are highly regulated, and there are rigorous rules that they have to follow concerning deposits, withdrawals, and verifying customers’ identities.

According to the Uniform Commercial Code (UCC) — a set of laws that regulate banking transactions — for a bank to cash a check, it must be properly payable, meaning the customer authorized the payment and the payment doesn’t violate the bank agreement.

Keep in mind that depositing a check written out to someone else outside of permitted circumstances can be illegal. If you sign the check as that individual and deposit it into your account, you could be charged with check forgery.

When you can deposit someone else’s check

Usually, when cashing a check, two parties are involved: the payer who writes the check and the payee who deposits or cashes it. But with third-party checks, the check is cashed in another person’s name.

Although you can legally deposit a third-party check under certain circumstances, not all banks will accept them, as banks can set their own policies regarding third-party checks.

There are a few scenarios where you may want to deposit a check written out to someone else:

You have a friend’s permission

If you have a friend or relative who wants to sign over a check to you, you must confirm with your bank that it will accept it, as not all will. You can improve the odds of your bank accepting the check by having your friend come with you to the bank to provide the teller with identification and consent.

Your friend will have to endorse the back of the check and write “pay to the order of” and your name on the endorsement area.

You have a joint account

If you have a joint account with your spouse or partner, the bank can require that both of you sign the check if it’s made out to two people.

If the check is written out to just one person, either person can cash or deposit the check into the account.

You’re cashing a check on behalf of a minor or someone under your legal guardianship

If your child is a minor and receives a check, you can cash it on their behalf. However, you must specify your relationship to your child on the check and sign your own name.

In the endorsement area, print the child’s name and add a hyphen and the word “minor.” Under that line, print your own name, add a hyphen, and describe your relationship to the child. For example, “parent,” “guardian,” or “father.” Sign your name under that line.

Many banks prohibit mobile deposits of third-party checks, even if it’s a parent cashing a check on behalf of a minor, so you may need to visit a bank in person.

You have power of attorney

Whether you’re helping an elderly parent or a relative who is in the military and serving overseas, you may have power of attorney (POA) to handle their financial affairs.

As the POA, you can manage matters on their behalf, including depositing or cashing checks. Typically, the POA is added as an agent to the account. But can you deposit someone else’s check in your account online? Generally, you can as long as you are listed as an agent on the account.

If you have POA and need to cash a check written out to your relative, print their name in the endorsement area. Under it, print your own name and your role as agent or POA, then add your signature.

When you need to cash or deposit the check, you may need to bring a copy of the POA form if you aren’t a listed agent with that particular bank.

You need to deposit a check made out to a deceased relative

If you are the executor of the deceased’s estate, you may be able to cash or deposit the check for particular purposes, such as payments for tax refunds or goods and services they purchased prior to their death.

However, if an executor was not named, the check cannot be cashed or deposited; it must be returned to the certifying agency and you must wait until the probate process is complete.

You have to cash a check written out to your business

If you run a business under a different name than your own, you can usually still cash it, but you’ll have to endorse it on behalf of the business.

In the endorsement area, sign the name of the business, sign your name, and write your title. For example, you might write “Owner” or “CEO.”

When you can’t deposit someone else’s check

Although depositing a check written in someone else’s name is possible, there are some legal issues you should be aware of first.

If you deposit a check with someone else listed as the payee without proper endorsement, the bank could flag the check as fraudulent. Check fraud or forgeries are serious issues — depending on the check amount, those offenses can be misdemeanors or felonies — and cashing someone else’s check without their permission can have significant legal consequences.

Risks associated with depositing someone else’s check

Cashing third-party checks can be risky. Depending on the circumstances, you could face the following issues:

• Delayed funds: With third-party checks, the bank could take more time to verify the check and put a hold on the funds. If you rely on that money to cover your bills, that delay can be a costly problem.

• Overdraft fees: Banks have to make deposits available quickly. A check may be cleared, but if it turns out later to be a bad check, you’re responsible for the funds. You could incur serious overdraft fees along with the lost money.

• Damaged relationships: Before cashing a check, be sure you have your friend’s or relative’s express permission. Ideally, they’d accompany you to the bank or provide a written statement. Otherwise, you risk damaging your relationship if they feel you wrongfully cashed the check.

Common check-cashing scams

A common scam involves a scammer signing over a check to you to deposit, usually for more than they owe you.

For example, a remote job listing may promise upfront payment and send you a check for more than the promised amount. Your “boss” may ask you to use some of the money to buy electronic gift cards you send them. The check turns out to be bad so you have to repay that money, and the scammer makes off with the gift cards.

If you’re a victim of a fake check scam, contact the Federal Trade Commission and your state’s attorney general.

Alternatives to depositing someone else’s check

Can you deposit someone else’s check in your account? Yes, but it can be more complicated than depositing a check written out to you. Some banks prohibit it, and there are some risks involved.

Instead, consider these alternatives:

• Be patient: Have the payee cash the check in their name. Once it clears, they can transfer the funds to you or write you a check in your name. This approach will take longer, but there’s less of a chance of issues.

• Get added to the account: Many banks will allow you to add a trusted individual to an account and get check deposit or cashing privileges.

• Open a joint account: If you frequently have to cash a check on behalf of a child, open a kid’s checking account. These accounts require a parent to be on the account too, which will allow you to cash or deposit checks.

• Explore other payment options: Consider peer-to-peer payment services like Venmo or Zelle rather than signing over checks. They’re quick and easy to use, and don’t require you to jump through hoops like you have with third-party checks.

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