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What is a fourth party check?

Updated: 9/18/2023
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Q: What is a fourth party check?
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What is a two party check?

A two party check is a check which is made out to more than one party. To cash or deposit a two party check, the check must be endorsed by both partied that the check is written out to.


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Two party check?

A two-party check is a check made out to two different individuals or entities.


What is a single party check?

In regards to check cashing, a single or one party check is a check in which the check writer and beneficiary are the same person. In other words, if I write a check from my bank account to myself, I am writing a single party check. Contrast this with a two party check in which one person or company writes a check to a second person or company, or a three party check in which one person or company writes a check to a second person or company and a third party guarantees some part of the check (usually the funds).


What is a second party check?

A "second party check" is a check where the payee is depositing or cashing the check. For example, Bob Smith writes a check to his brother John Smith. John Smith is the payee, (second party) who deposits the check into an account in his own name, or cashes the check. If John Smith wants to endorse the check on the back to a different person, that other person would be a third party. The check would now be a "third party check." Banks are likely to not accept this type of check if the third party tried to cash it, because they cannot verify endorsements.


Is a check from your job a Third Party Check?

A third party check is a check which is signed over to an individual not named on the front of the check as either the maker (entity writing the check) or the payee (to whom the check is payable). The payee signs the check over to another individual, who is the "third party."


Can a two party check be cashed only by the first party?

generally no, but check with your financial institution.


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