A check is a written, signed, and dated document instructing a bank, credit union, or other relevant financial institution to debit a particular account. You can write the document to a specific person or a company. Even though checks are becoming outdated, they still remain some of the payment methods that one can use to make payments to others. You can either deposit a check or cash it out. Today I will show you how to cash third party check online instantly.
But what are third-party checks? You might have used checks several times but came across this word third party for the first time. Usually, we have two parties on a check. The person is writing (payor), the account holder, and the person set to benefit from who is called a payee. When it comes to a third-party check, another person comes in between the payor and the payee to negotiate on behalf of the payee.
Therefore, a third-party check is the one where someone else other than the targeted payee takes over cashing or depositing a check. The document must be deposited in the third party’s account to become a third-party one. Just a few financial companies accept third-party checks due to their risks. Someone may have stolen or collected someone else’s check and decided to get money out of it illegally.
How do you write a check?
Writing the document may seem complicated, but that is not the case as the process is straightforward. The following procedure highlights how to write a check.
i) Write the dates
You should start by writing the date you are writing the check. You should place the dates on the top right-hand corner of the document. Every financial company needs to see when the document was written to determine validity.
ii) Write the name of the payee
The payee is the person set to benefit from the payment. On the space printed, “Pay To The Order Of” is where you should write the beneficiary’s name. You can write the name of the person or business. A check is one of the best ways to transfer money between banks since someone can deposit a check in another bank other than the payor’s bank. Writing the payee’s name is very important to prevent someone else from cashing out.
However, if you do not know who will benefit from the payment, you can write the word “cash” instead of someone’s name. The only disadvantage is that anyone can deposit or cash out the check.
iii) Write the payment amount in numbers
You should write the amount of money you intend to be debited from your account in numbers. Make sure you separate dollars and cents with a dot to avoid confusion. If there are no cents, you can write the amount then include 0/100 to show no vets.
iv) Write the amount in words
It is a requirement to write the amount you are paying a particular person or company in words. Writing in words ensures that no one can manipulate the figures and thus keeps you safe from losing money.
Some people cannot be trusted, and someone may alter the figures to cash out more from your account. You can see where to write the amount just below the space you should write the payee’s name.
v) Write a memo
It is always important to describe the payment. Here, you need to write why you are writing the check. If you are writing to pay for electricity, you can write “Electricity Bill” or write your account number so that the funds go straight to your name.
If paying school fees, you can write “school fees” on the description space, and you are good to go. Writing a memo helps the beneficiary to know precisely why you made the payment
vi) Sign the check
The last thing one has to do is sign the document since a check without a sign is unacceptable. Signing the document shows that you agree for the funds to be drawn from your account. The document must resemble the one you used when opening your account, or it will be rejected.
How to cash out a check?
There are various ways you can get money out of a check. They include the following.
a) Visit your bank to cash out
Banks accept cashing out checks from other institutions. You can thus visit your bank and either cashout or deposit the funds into your account. You can also visit significant retailers such as Walmart and cash out at a fee. Some banks allow you to deposit a check online using a mobile wallet.
b) Endorse it
The next step is endorsing your check by signing the back on the line marked X.
c) Hand over to the cashier with ID or a bank card
If you are cashing out or depositing a check in an institution where you do not have an account, you must produce either of the above documents to prove your identity. You then hand over the document to get the money. Some financial institutions will ask for your identification documents even if you are a customer.
Do I need a bank account to cash out a check?
You do not need a bank to cash out. You can visit the bank printed on the check and then cash out by producing the document together with your ID. Unlike when you deposit it in your bank account, cashing out without a bank account attracts some fees.
One can also transfer money to someone else’s bank account using a check by instructing the cashier to deposit the money in the other person’s account.
Moreover, you can visit some retail stores and get money out of your check. As I mentioned earlier, Walmart is one of the stores where you can cash out funds from a check. Moreover, you can use mobile money wallets such as Cash App and Venmo.
Where can I cash a third party check online instantly?
If you are wondering where to cash out your check immediately, then worry no more since there are various platforms where you can do so. They include the following.
1) PayPal
PayPal allows you to cash out your check immediately at a fee. However, you can cash out and wait for ten days to get the funds in your PayPal account. You can use the procedure below.
- Open your PayPal app
- Tap More in the PayPal app
- Next, tap cash a check
- Sign at the back
- Take a photo of both the front and back of the signed check
- Press Next
- Choose when you want your money
2) Greendot App
Green Dot is one of the platforms that issue prepaid cards. For your information, you can transfer money from a prepaid account to a bank account online. Now back to depositing checks. You can deposit your document quickly using the Green Dot app for free. Like PayPal, you need to take pictures and upload them to the platform.
4) Cash App
Cash App is a peer-peer money transfer company that allows you to transfer and receive money from others. The platform also allows you to deposit checks online using the mobile capture option. You only need to sign the back, then upload the details to your account.
5) Venmo
Venmo is a product from PayPal; although it only operates in the US, the platform allows you to deposit a check. You can do so as follows.
- Navigate to the “You” tab by choosing the single person icon and tapping “Manage Balance.”
- Choose “Cash a Check.”
- Enter the amount to cash out and take a picture of the front and back of your signed document with your mobile device
- Tap “Next.”
- Choose how quickly you want your money and follow other instructions.
Once the funds are in your Venmo account, you can transfer money using the routing number and account number to your bank account or send the funds to others.
6) Chime
Chime is an online bank that allows you to deposit and use money online. You can also deposit money using your Chime account using the steps below.
- Log into your Chime mobile banking app.
- Find the mobile check deposit menu in your app.
- Choose the account you want to deposit (checking or savings)
- Enter the amount on the check.
- Take a photo of the document for both front and back.
Is a check the best option to send money?
Nowadays, checks are not the best ways to make payments. Since the introduction of mobile money transfer services, things have changed. You can transfer funds instantly to someone else using an application such as PayPal, Venmo, Payoneer, and Cash App, among others. Checks can take many days to reach the target person.
There are other ways you can send money from a bank account without verification. For example, when you use your debit card to make payments to an online platform, most banks will just process the request without requiring the PIN.
Bottom line
A check is a written, signed, and dated paper instructing a bank, credit union, or any other relevant financial company to debit a particular account. The document gives you a way of making payments for goods and services instead of using cash.
However, checks are not the best ways to transfer money as we have PayPal, Payoneer, Venmo, and Cash App, among others. The apps allow you to deposit checks online.
