Cashing Check for Business Not Payable to Business

We have a business customer that wanted to cash a payroll check that they had received from their customer, used a portion of the check to make a payment, and receive the balance in cash. The business then wanted us to cash the check to replace the funds in their petty cash drawer. Would this transaction be the same as not cashing a check payable to a business (which is our policy)?

Thanks

Same check (ie: we refused option one and he then requested option two)?

Any any case, it sounds like you are cashing a third party check, by endorsement, which is probably also against your bank's policy.

It goes back to your policy on 3rd party checks.

It's not uncommon though for some businesses to cash paychecks for employees and a few customers. We have some that do this and include the checks in their deposit (endorsed of course). They need to be aware though that if they cash a check for $1000 or more they become an MSB.