If you owe someone something, you most likely want to pay them off as soon as possible. If you add your paychecks directly to your bank account with digital banking, you may not always have cash with you. There may also be some checks lying around that you've put off.
To save time, you can forward a check to someone else to pay. This means that you sign a check that was originally given to you and deposit it instead. We'll go through the four main steps to certify a check to someone below.
Step 1: Make a plan with your recipient
Confirming a check to someone else is not always an option, but you may be able to use this method for rent or other monthly expenses. First, speak to your recipient to make sure they are familiar with this payment option.
Recipients may worry that banks will decline this payment, although this may not be the common practice. Make sure you communicate beforehand to avoid sending a check to someone who may not accept it. Once on board, swap out your full name and contact information for the next steps.
Step 2: Check this with your bank
It is common for banks to have different rules and requirements when it comes to sending a check to another person. Given the risk of stolen checks or checks paid to the wrong person, some banks may not offer these services. To make this process go smoothly, call or visit your bank first.
Keep in mind that you may need to contact the bank from which you originally received the check. In most cases, the bank contact information can be found on the front of the check. Don't forget to ask for additional ID that your recipient may need to bring to cash out.
Step 3: Sign the check over correctly on the recipient
How do you sign a check with someone else? First, turn the check over to find the endorsement line. This is usually located to the right or left along the level of the check labeled “Confirm check here”.
When you have found it, sign your name on the top line and write "Pay in the order from (recipient name)" underneath. This shows the cashier that you authorize payment of this check to a third party. Be sure to write down the name of your recipient as it appears on their ID. – The cashier checks his ID one more time before paying it out.
Step 4: Submit your check
It's time to hand the payment over to your recipient! When you meet up with your recipient, swap contacts if you haven't already. Should breakdowns occur, e.g. B. If the bank does not accept the payment, they can contact you.
If you are concerned, check with your recipient to make sure the exam was taken. If you or someone else is uncomfortable with the exchange, opt for a safer alternative. For example, certified checks are approved by banks for a more secure payment method and can be a better payment alternative, especially for large purchases.
Two alternatives for signing a check for someone else
Paying bills with pre-existing checks can save time, but not always for the recipient. If a certified check isn't a convenient option, there are a few different routes available instead.
1. Payout at the issued bank
You could just go to the bank and cash your check. Most banking apps these days allow digital check deposits and online transfers. You can walk to your local ATM to withdraw the funds or transfer funds online. Use your bank's mobile app or other apps such as Venmo or Cashapp.
Note that most ATMs or banks that are not affiliated with your bank may impose service fees. While this usually only costs a few dollars, this could buy you your morning coffee.
2. Open a bank account
If you don't already have a bank account, it may be time to open one! Frequently cashing checks at banks that you don't have an account with can result in large bills. If you were to cash your bi-weekly paychecks with a service fee of $ 5, you would be paying $ 120 per year in fees. That's $ 120 that you could invest in your savings for future investments.
A bank account can also help make payments easier and more efficient. By automating payments, you can avoid late fees and keep track of your monthly expenses. Apps like Mint allow you to keep track of how your money is going in and out through your trusted smartphone.
When checks are filled out on you, you may feel like the only one who can do something with them. During times when you don't want to cash your check, there is a great way to recommend it to someone you might have to pay. While this can be done, you may want to take the extra steps to make this as smooth as possible. To do this, follow the steps above and check your budget before making financial decisions with our app.