What Banks Accept Third-Party Checks

In the field of financial transactions, a third-party check emerges as a nuanced twist on the conventional dynamics of a two-party check. While the customary two-party check encompasses a payer, meaning the one who initiates the check – and a payee – the one who has the benefits, the introduction of a third-party check is an additional entity. In the conventional structure, the payee can promptly carry the check to their financial institution for immediate cashing or seamless deposit into their account. At the same time, the corresponding funds are meticulously withdrawn from the account of the payer, as a harmonious financial exchange.

However, the concept of a third-party check infuses an extra dimension, embedding an intermediary in the transaction equation. The intermediary, meaning the third person, becomes a pivotal player in this scheme. With the check endorsed over to this third entity, a distinctive layer of complexity will take root. This entity possesses the autonomy to actualize the check’s monetary value by either converting it into cash or channeling it into its own repository.

Not all banks accept third-party checks

The acceptance of third-party checks can vary significantly depending on the policies and regulations of each bank. While many banks do accept third-party checks, they might have specific conditions and demands that need to be met for the check to be processed. Commonly, the person to whom the check is endorsed, meaning the third party, needs to have an account at the bank where they are attempting to deposit or cash the check. This is often done to reduce the risk of fraud and ensure that the transaction is legitimate.

We’ve made a list of some of the banks that accept third-party checks:


HSBC has established specific criteria that must be met for the bank to give its ok to third-party checks. To ensure validity, checks might necessitate endorsements from all parties set to receive payment, with the possibility of endorsements being assured and cross-verified.

In terms of costs associated with this service, we have:

For HSBC account holders: No charges will apply.
For non-account holders: Processing HSBC personal checks incur no charges. However, for other check types, the fee structure varies according to the location of the bank.

Navy Federal Credit Union

Navy Federal Credit Union has established specific protocols that must be followed for accepting third-party checks. For members who seek to cash or deposit such checks, a critical step involves signing them in the direct presence of a teller. This verification process underscores the commitment to maintaining the credibility and authenticity of the transaction. Moreover, non-members who wish to cash third-party checks originating from NFCU can do so if both of the parties are physically present. This in-person verification step ensures the validity and security of the transaction.

As for the financial aspect, we have:

For Navy Federal Credit Union account holders: No charges are applicable.
For individuals who don’t qualify as account holders: The policy remains consistent, with no fees being imposed, fostering an equitable and transparent approach for all parties involved in the transaction.


Citibank has outlined specific stipulations regarding the handling of third-party checks. For those who are not clients of Citibank, the ability to cash checks is restricted to those originating from Citibank itself. On the other hand, for individuals who are customers of Citibank, the process is a bit nuanced. Third-party checks can be cashed, yet the extent of the cashed amount is constrained by the available balance within the checking account. This implies that the remainder beyond the available balance may be directed toward the deposit. Notably, there is the potential for verification of the original payee’s endorsement to be undertaken, reinforcing the authentication of the transaction.

As for the financial aspect, it needs to be said that:

For Citibank account holders: The service doesn’t incur any charges, ensuring a seamless and cost-free transaction experience within the Citibank ecosystem.
For those who lack Citibank accounts: When dealing with checks originating from Citibank, the policy remains unchanged, involving no financial imposition. This approach adheres to fairness and accessibility for both account holders and non-account holders who interact with the services of the bank.

Citibank’s precise guidelines echo their commitment to fostering a secure and transparent environment when it comes to managing third-party checks, underscored by a fee structure that caters to the convenience of their clientele and those engaging with their services.

TD Bank

TD Bank has established specific prerequisites as well when it comes to the processing of third-party checks. To facilitate a smooth transaction, clients are required to furnish two forms of identification. Notably, one of these identifications should be a photo ID issued by the government. Furthermore, the checks needed for processing must be sourced from TD Bank, reinforcing the bank’s commitment to authenticity and security within the transaction realm.

In terms of the financial aspect, you need to keep in mind:

For TD Bank account holders: The service is extended free of any charges, aligning with TD Bank’s approach of prioritizing convenience and accessibility for their customers.
For individuals who lack TD Bank accounts: The service does come with a fee of $10, a nominal cost that caters to the processing and administration that are involved in handling third-party checks from non-account holders.

Using third-party checks as a bank client can pose both advantages and considerations that need to be weighed based on each person’s circumstances and needs. In other words, you should always consult a finance specialist before making a decision.

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