With the advancement of time and social mindsets, financial freedom for everyone is a must. With these finances having made a huge shift from cash/ physical money to digital or other forms of money, everyone must know the ins and outs of cashing cheques, conducting online payments and receptions, etc. Let’s know the steps for How Are Two-Party Cheques Cashed?
Cheques issued by one person to another who then passes the same to a third party are also called two-party cheques. Different banks have different rules and regulations on how these two-party cheques are to be cashed, but generally, it is observed that the signatures of both parties are needed for the cheque to be cashed. Read on to learn more about the same.
POINTS TO REMEMBER WHEN TAKING A TWO-PARTY CHEQUE:
Some things have to be kept in mind while taking a two-party cheque that is similar to the ones you have to take care of when receiving a normal one. They are as follows:
- Check dates meticulously to avoid receiving an expired cheque.
- Cross-check any identification card of the person issuing the cheque to you- for example, their driver’s license. Make sure to pay attention to other minor details like their signatures or ID photos, along with their address and contact information.
- When you are being given a cheque for a large amount, try and contact the bank beforehand to inquire about the status of the said account.
- Be prepared to take action in the worst-case scenario- the cheque fails and other legalities get involved.
HOW DO YOU DEPOSIT A TWO-PARTY CHEQUE?
Depositing two-party cheques can be a pretty daunting task, essentially because it involves making physical trips to the bank branch with the people whose names are involved in the process too. Although you can also do it online or through your mobile phone after everything has been cleared, and you don’t need the cash urgently as such.
THINGS TO REMEMBER:
Banks have cash-checking rules in place to avoid fraud and other sorts of legal trouble. You can’t deposit a check with someone else’s name on it unless it is your underage child.
If your name is spelled incorrectly on a cheque, sign it with the incorrect spelling. Remember to sign it a second time with the correct spelling.
BANKS THAT ACCEPT TWO-PARTY CHEQUES:
The top banks in America that accept two-party cheques are as follows:
- Bank of America
- PNC Bank
- Citibank
- U.S. Bank
HOW TO CASH A TWO-PARTY CHEQUE?
Here’s the answer to the main query of the article.
- Check how the cheque is addressed- if there is the usage of ‘and’, or ‘or.’ If ‘and’ has been used between the two receivers’ names, then either one could cash the cheque, essentially treating it like a normal one. But if ‘or’ has been used, that is where the trouble starts. Both the receivers have to travel together to the concerned bank, and produce their identities, and only then will they be able to cash the cheque. These rules vary from bank to bank.
- Sign the back of the cheque if you are one of the names listed. After that, it is valid for either of the two people to cash it in any way convenient for them.
- Coming to the main step of the entire process, take the cheque to the bank to cash it. As mentioned above, please take an identity verification card to the bank as you will be asked to prove if you’re one of the receivers listed on the cheque.
CONCLUSION:
Two-party cheques involve two names instead of one and may disrupt the normal process of cashing or depositing a normal cheque. Different banks have different rules for the same, and you may contact their helpline number for any specific query, but make sure you check the ‘and/or’ thing very seriously.
FREQUENTLY ASKED QUESTION:
- What if both parties named are there, but no “and” or “or” on the check?
It will generally be considered as an ‘or’ case, else the bank will take it from there and let both the parties involved know of further procedures.
- Can one person cash a check made out with one first name and second full?
This depends on the concerned bank. Please visit their FAQ desk to get such queries answered.
- What does the % symbol mean on a cheque?
It means “in care of.”
- How to cash a two-party cheque without a bank account?
Cash it at the issuing bank itself, or a cash-checking store.
- Can you mobile deposit a two-party cheque?
Make use of your joint account here, wherein both the receivers’ names are mentioned.