William Lipovsky
To use a check to pay someone else, you can cash the check and then hand over the cash, or you can save some time and effort by signing over the check to the person you want to pay.
To sign over a check, you must endorse it with both the recipient’s information and your own signature.
Below, we detail how and when to sign over a check — including an instructional video to show you the steps.
How to Sign Over a Check to Someone Else
When you receive a check and sign it over to someone else, you’re creating a third-party check.
The “third” in third-party refers to the person who will ultimately receive the funds from the check; party one is the writer of the check, you’re party two (the original recipient), and the person you sign it over to is the third party.
To sign over a third-party check, instead of just signing your name on the back of the check as you would when cashing the check yourself, you’ll need to include information about the person you’re signing it over to.
Third-party checks are useful because you can’t have someone else cash a check for you (as previously reported).
Note that the process is the same regardless of whether you’re signing over a personal check, business check, insurance check, or another type.
Take the following steps (which you can see in action in our video below):
Step 1: Confirm that the person or company you’re signing the check over to will accept a third-party check.
Before signing a check over, it’s best to check with the recipient and confirm that they’re willing to accept a third-party check.
It’s also a good idea for the recipient to double-check the requirements for depositing or cashing third-party checks at their intended bank or store.
Not all banks or check cashing locations will accept third-party checks due to the increased risk of fraud,[1] and you may need to accompany them to the check cashing location to verify the check.
Step 2: Add the recipient’s information.
Every check includes an endorsement section on the back, marked with a phrase like “Endorse Here.”
Rather than signing the check on this line as you would when cashing it, you’ll add the recipient’s information above your signature.
Write “Pay to the order of [recipient’s name]” on the first line of the endorsement section — for example, “Pay to the order of John Smith.”
Be sure the name of the person you’re singing the check over to is legible and spelled correctly. It’ll need to match the recipient’s ID when they cash the check.
Including the recipient’s name above your own is an anti-fraud measure; the bank will know that you genuinely signed the check over to that person, and they didn’t find an endorsed check and sign it over to themselves.
Step 3: Endorse the check with your own signature.
Below the recipient’s information, sign the second line of the “Endorse Here” section with your own name.
Under the Uniform Commercial Code, your signature serves as a warranty.[2] You’re telling not just the person you’re giving the check to but also the bank that cashes it that the check is valid and unaltered.
Step 4: Give the check to the recipient.
Once the check is correctly endorsed with your signature and the recipient’s name, the recipient can cash or deposit it.
It’s best if you go with the recipient when they attempt to deposit or cash the check; as noted above, many places that accept or cash third-party checks require that both parties be present and show photo ID.
When to Create a Third-Party Check
With the rise of digital payment methods, third-party checks are a lot less common than they used to be; nowadays, you’ll typically only use them in a few instances.
For example, auto insurance companies will usually pay out a claim in the form of a check made out to you. You’re then expected to endorse the check over to the mechanic who repairs your car.
Using third-party checks to settle private debts (such as one between you and your friend for concert tickets) is another option, but it’s rare.
If you decide you don’t need to create a third-party check, see our related research for information on how to cash a check yourself rather than signing it over.
Where to Cash or Deposit a Third-Party Check
Due to the higher amount of risk involved, it can be more difficult to find a place that will cash a third-party check than cash a standard check.
For information about where the recipient can cash a third-party check, see our lists of banks that accept third-party checks and where to cash third-party checks.
A Warning About Third-Party Checks
When signing over a check to someone else, make sure you endorse it and sign it over to them at the same time, rather than endorsing it with your own signature first and signing it over to them later.
Though whoever cashes the check will need to show an ID, it’s best not to take the risk of endorsing ahead of time in case you misplace or drop the check. Wait until you’re at the bank or check cashing store, then follow the steps above.
What if someone writes you a check, and you don’t even have a bank account?
Hello, Lynne! You do not need a bank account to receive a check. You can either sign it over to someone else (as described in this article) or cash it. Our article on how to cash a check without a bank account has a list of places where you can cash your check. Best of luck!
My sister in law signed her name on the top line on the back of the check first instead of putting “Pay to the order of.”. Will it be an issue to have her put it on the second line and I sign on the third?
Hi Kara,
Who is the check made out to on the front?
Thanks, Archie! We always appreciate fact-checking from our readers. 🙂