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Employee Check Cashing with a Twist

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Question: 
If an employer brings his employees to the bank, and he endorses the checks after they do, in order to cash them, and we do not have their ID, are we required to get their ID before cashing these for the employer?
Answer: 

If you are cashing the checks on the strength of the employer's endorsement, first be sure whose endorsement you are getting. If the employer is an entity and the endorsement is that of an individual, without authorization from the entity for an endorsement in its name, you probably won't have legal access to the entity should there be a problem with the check. On the other hand, if the individual who is providing that endorsement is vouching for the endorsement and the identity of the payee, that probably covers any risk that you'll have a problem with the check. I don't think there's anything to be gained by checking the payees' identification in this scenario.

First published on BankersOnline.com 5/24/10

First published on 05/24/2010

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