No Endorsement Required

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Question:

What are most bank's policies on cashing on-us checks payable to "Cash" for non-customers?

Answer:

A check payable to "Cash" is a bearer instrument and requires no endorsement to be negotiable. It can be negotiated by anyone who has it in their hands. Having said that, I can tell you almost every bank I've dealt with requires the endorsement of the cashier. In very rareinstances, where the presenter gets vocal and starts spouting regulations, the check will be cashed without any endorsement. There can be no claim of forgery, so unless the maker wants to know where themoney actually went, there is no reason for endorsement. Nonetheless, it is my experience that most financial institutions will ask for an endorsement. You should keep in mind, however, that none is required from customers OR from non-customers.

First published on BankersOnline.com 1/15/01