Yes, Wells Fargo does accept signed-over checks. However, there are some restrictions and requirements that you need to follow before submitting an unsigned check for collection or deposit.
What are signed-over checks?
Signing over a check, also known as endorsing a check, is the act of transferring the right to cash or deposit a check to another person or entity.
This is typically done by signing the back of the check. The person or business to whom the check was originally made out to, known as the payee, can sign the check over to another person or business, making it a “third-party check.”
Once a check has been signed over, it becomes negotiable, which means it can be cashed or deposited by anyone who presents it to the bank, even if that person isn’t the named payee on the front of the check.
However, not all banks will accept third-party checks due to the risk of fraud.
For example, “if you receive a check made out to your name and you want to give that money to someone else, you could sign the check over to them. They would then be able to deposit the check into their own bank account.”
Below is the Table which explains the main difference between regular checks and signed-over checks.
| Regular Checks | Signed Over Checks | |
|---|---|---|
| Payee | The original payee endorses the check by signing the back and then writes “Pay to the order of [New Payee’s Name]”, effectively signing the check over to them. | The original payee signs over the check to another person or entity, making them the new payee. |
| Endorsement | The payee endorses the check by signing the back when they are ready to cash or deposit it. | Low-risk level as the check is directly made out to a specific individual or entity. |
| Cashing/Depositing | The payee can cash or deposit the check into their bank account. | The new payee can cash or deposit the check into their bank account. |
| Risk Level | Not all banks will accept signed-over checks due to the higher risk of fraud. It’s always best to check with the specific bank for their policies. | Higher risk level as the check has been transferred to a third party, which increases the chances of fraud. |
| Bank Policies | Almost all banks will cash or deposit regular checks. | Not all banks will accept signed over checks due to the higher risk of fraud. It’s always best to check with the specific bank for their policies. |
Does Wells Fargo accept signed-over checks?
Yes, Wells Fargo will accept signed-over checks, also known as “bearer” or “open” checks. This means that the check can be deposited into any account, as long as the person depositing it has endorsed the back of the check correctly.
However, there are certain rules you need to know about it.
- Wells Fargo will accept checks that have been properly endorsed by the original payee. This means the back of the check has been signed by the original payee, along with “pay to the order of [new payee]” or “pay to [new payee]”.
- The new payee, who is now presenting the endorsed check to Wells Fargo, will need to have an account at Wells Fargo to deposit the check.
- Wells Fargo may place a hold on the funds from the endorsed check, depending on several factors like the check amount, the new payee’s account history, etc. This is to allow time for the check to clear from the original account it was drawn from.
- If the endorsed check is lost or stolen before it is deposited, Wells Fargo may not be responsible for reimbursing the funds, since the check was already properly endorsed. The account holder would need to work with the issuer of the original check.
- There are some restrictions on certain types of checks that Wells Fargo will not accept as endorsed checks, like insurance claim checks, traveler’s checks, and U.S. Treasury checks.
How to deposit or cash a signed-over check at Wells Fargo?
Here are the steps on how to deposit or cash a signed check at Wells Fargo:
Steps to deposit or cash a signed-over check
- Go to a Wells Fargo branch.
- Bring the check and a valid form of identification for the new payee.
- Indicate on the check that you are depositing it for someone else.
- Sign the back of the check correctly.
- Give the check to the teller.
The teller will process the deposit or cash the check and you will receive a receipt. The funds from the check will be available to you according to Wells Fargo’s funds availability policy.
Endorsement requirements for the original payee
The original payee must endorse the check in the following way:
- Sign their name on the back of the check in the area designated for endorsements.
- Write “Pay to the order of” and the name of the new payee.
- Write “For Deposit Only” below their signature.
Endorsement requirements for the new payee
The new payee must endorse the check in the following way:
- Sign their name on the back of the check in the area designated for endorsements.
- Write “For Deposit Only” below their signature.
Required identification for the new payee
The new payee must present a valid form of identification to the teller when depositing or cashing the check. The form of identification must be acceptable to Wells Fargo.
Here are some examples of acceptable forms of identification:
- Driver’s license
- State identification card
- Passport
- Military identification card
Tips for submitting signed-over checks at Wells Fargo
Submitting signed over checks, or third-party checks, at Wells Fargo can be a bit tricky because their policy has become stricter over the years due to the risk of fraud.
However, it’s not impossible, and here are some tips:
- Endorse Correctly: The original payee should endorse the check by signing their name on the back. Below their signature, they should write “Pay to the order of [Your Name]”. You, as the new payee, should then sign your name below this endorsement.
- Go Together: Wells Fargo generally requires that both the original payee and the new payee be present at the bank when submitting a signed-over check. So, if possible, go to the bank together.
- Bring Identification: Both you and the original payee should bring a valid form of identification, like a driver’s license or passport, to verify your identity.
- Use Mobile Deposit: If Wells Fargo allows, you might be able to deposit the check using their mobile app. To do this, you would need to take a picture of both sides of the endorsed check and follow the prompts in the app to submit the deposit.
- Be Prepared for Holds: Even if Wells Fargo accepts the check, they may put a hold on the funds until the check clears. This is a common practice with third-party checks due to the increased risk of fraud.
Conclusion
Depositing or cashing a signed-over check at Wells Fargo is a relatively simple process. However, it is important to follow the correct procedures to avoid any delays or problems.
Here are some key points to remember:
- The original payee must endorse the check correctly.
- The new payee must also endorse the check correctly.
- The new payee must present a valid form of identification to the teller.
- Wells Fargo may place a hold on the check for up to 10 business days.
