1. check negotiated through a bank, except one payable to the writer of the check (that is, a check written for cash). The primary party to a transaction is the bank on which a check is drawn. The secondary party is the drawer of the check against funds on deposit in the bank. The third party is the payee who endorses the check.
2. double-endorsed check. In this instance, the payee endorses the check by signing the back, then passes the check to a subsequent holder, who endorses it prior to cashing it. Recipients of checks with multiple endorsers are reluctant to accept them unless they can verify each endorser's signature.
3. payable-through drafts and other negotiable orders not directly serviced by the providing company. For example, a check written against a money market mutual fund is processed not by the mutual fund company but typically by a commercial bank that provides a "third-party" or "payable-through" service. Money orders, credit union share drafts, and checks drawn against a brokerage account are other examples of payable-through or third-party items.
