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#658233 - 12/28/06 02:08 PM Cashing business checks for individuals
GSB Training Offline
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I'm curious to know what other banks do in this area. We have had some discussion about allowing business customers to cash checks made payable to the business rather than depositing them (not made payable to petty cash. This discussion includes allowing sole proprietors to cash checks made payable to their DBA rather than depositing them. What do you guys do? Thanks in advance for the help.

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Deposits and Payments
#658276 - 12/28/06 02:53 PM Re: Cashing business checks for individuals GSB Training
#Just Jay Online
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#Just Jay
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Cheeseheadland
DBA's fine.

Any other business/organization, we require a full deposit into the account with no cash back, and then a cash withdrawal, or cash a check payable to them and drawn on the account.

This has been the common practice at the three financials I have worked for over the last 14 years.

The owner of the money is not the individual presenting the deposit, it is the business/organization. Two words come to mind...tax evasion...something I do not want my bankers to aid our business customers in.
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#658855 - 12/29/06 01:48 PM Re: Cashing business checks for individuals #Just Jay
A_G Online
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We also do not cash checks made payable to businesses for individuals. They need to deposit the checks into their account then withdraw from the account.

If the person does not have an account with us (but the check is drawn on our bank) we will make sure the check is good and cut them a cashier's check so that they can take it to their Bank and deposit it. Sometimes, for whatever reason (previous NSF on the check, etc), they do not want to deopsit personal checks into their account at their Bank.
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#658866 - 12/29/06 02:09 PM Re: Cashing business checks for individuals A_G
rwhlpn Offline
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Joined: Aug 2005
Posts: 38
We have never allowed it, but the question was always asked. The questions stopped when I told people to look at the corporate resolution, or the LLC agreement and show me where it says "they can cash a check payable to their business. It says they may deposit, or withdraw, but it never says cash a check." Once they had the written answer to show the customer, the question stopped getting asked.

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#658961 - 12/29/06 03:35 PM Re: Cashing business checks for individuals A_G
#Just Jay Online
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#Just Jay
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Cheeseheadland
Originally Posted By: AuditGuy
We also do not cash checks made payable to businesses for individuals. They need to deposit the checks into their account then withdraw from the account.

If the person does not have an account with us (but the check is drawn on our bank) we will make sure the check is good and cut them a cashier's check so that they can take it to their Bank and deposit it. Sometimes, for whatever reason (previous NSF on the check, etc), they do not want to deopsit personal checks into their account at their Bank.


Good point AG - forgot that last part, yes we do the same too for checks made payable to a business, but they have their account elsewhere - we cash the check and give them a cashiers check to present to their own bank.
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