Can You Deposit a Check Made Out to Cash?
Understand the unique process of depositing checks made out to "Cash," including bank requirements and implications for all parties.
Checks made out to “Cash” are negotiable instruments where the payee line states “Cash” instead of a specific individual or entity. Such a check is payable to anyone who possesses it, similar to physical currency.
Depositing a Check Made Out to “Cash”
It is possible to deposit a check made out to “Cash” into your bank account. The first step involves endorsing the check. Endorsement means signing your name on the back of the check in the designated endorsement area.
Once endorsed, the check becomes a bearer instrument. Banks require endorsement as it signifies the holder’s authorization for funds to be processed. You can deposit the check at a bank branch with a teller, through an ATM, or via a mobile banking app. For mobile deposits, some banks may require “For Mobile Deposit Only” written below your signature.
Bank Scrutiny and Verification Requirements
While depositing a check made out to “Cash” is possible, banks often apply increased scrutiny due to the absence of a named payee. This heightened attention prevents fraud and ensures funds are disbursed appropriately. Banks typically require the individual depositing the check to be an account holder, and they may have internal policies governing acceptance based on the amount or transaction nature.
A requirement for depositing these checks is providing valid identification. Government-issued photo IDs, such as a driver’s license, state ID card, or passport, are commonly accepted. The bank will use this identification to verify your identity and record who is depositing the funds, creating a traceable record. Some banks might also have cut-off times for deposits, which can affect when the funds become available, typically within one to two business days.
Considerations for Issuing and Receiving “Cash” Checks
Because they lack a specific payee, checks made out to “Cash” are less secure than those written to a named individual or entity. If a check made out to “Cash” is lost or stolen, anyone who finds it can endorse and deposit or cash it, similar to how physical cash operates.
For the issuer, this means that secure handling and delivery are particularly important, as the check is payable to anyone in possession once endorsed. For the receiver, the bank’s requirement for robust identification upon deposit or cashing serves as a safeguard against unauthorized use. Such checks are sometimes issued for convenience, particularly for small, immediate payments where the recipient’s exact name might not be known, or when an individual needs to quickly access cash from their own account at a different bank. However, this convenience comes with reduced traceability and increased risk compared to checks made out to a specific person.