Cash Back to a Non-Accountholder

Question: I have a question regarding giving cash back on a personal deposit account. Assuming the scenario is: Single ownership accountholder sends girlfriend to bank with payroll check. Can girlfriend who is not an authorized signer on the account deposit and receive cash back from the deposit?

Answer: It's interesting that both these questions came in on the same day from opposite sides of the country. Same problems no matter where your financial institution is located!

Any teller knows that in order to split-deposit a check, the first thing you have to do is cash out the check. Would you cash your depositor's payroll check for the girlfriend? This is one of those times you may want to contact your depositor. Or - is this one of those cases where he's been doing this over a period of time, and has never objected to the girlfriend's transactions? It's a tough "yes" or "no" decision. If the girlfriend has the check and no printed deposit ticket - asks for one, and the account number, my answer would be "No!" If, on the other hand she and the depositor are known to you, she has a printed deposit ticket from him, and this is an ongoing habit, then the answer might be "Yes." You are going to try to service your customer - not make him angry.

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 12, 1/05