If you‘ve been issued a two-party check, also known as a third-party check, you may be wondering where you can cash it. Walmart is known for offering an array of financial services at their Money Center locations, including low-cost check cashing. But does Walmart cash two-party checks?
The short answer is yes, Walmart does cash two-party checks, but there are some important restrictions and requirements to be aware of. In this post, we‘ll tell you everything you need to know about cashing a two-party check at Walmart, including the fees, limits, ID requirements, and step-by-step process. We‘ll also compare your other options like banks and check cashing stores.
What Is a Two-Party Check?
First, let‘s clarify what a two-party check is. A two-party check is a check made out to two payees instead of one. The payees are typically listed on the "Pay to the Order Of" line with an "&" or "or" between the names.
For example, the check may read:
"Pay to the Order Of John Smith & Jane Doe"
This means the check is payable to both John Smith and Jane Doe together. For a two-party check joined by an "&", both parties typically need to be present to cash or deposit the check.
Alternatively, a two-party check may read:
"Pay to the Order Of John Smith or Jane Doe"
In this case, the check is payable to either John Smith or Jane Doe individually. Only one of them needs to endorse and cash it.
Two-party checks are most commonly used for expenses shared by two people, such as rent paid to two roommates or an insurance payout to two beneficiaries. They can also be used to pay a borrower and lender together.
Walmart‘s Policy for Cashing Two-Party Checks
Now that you know what a two-party check is, let‘s dive into Walmart‘s policy for cashing them.
According to Walmart‘s check cashing policy, they will cash two-party checks at most Walmart store locations with a Money Center or customer service desk. To cash a two-party check at Walmart, here are the key requirements and restrictions to know:
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Dollar limit: Two-party checks can only be cashed for up to $200. Checks over $200 will not be accepted as two-party checks.
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Fees: Walmart charges a fee of $4 to cash two-party checks up to $200. This is a very competitive rate compared to many other check cashing options.
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ID requirements: You will need to present a valid, government-issued photo ID to cash a two-party check at Walmart. Acceptable forms of ID include a driver‘s license, state ID, military ID, or passport. Both payees listed on the check will need to provide ID if both are required to cash it.
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Both parties may need to be present: If the two-party check is joined by "and" or "&", Walmart will require both payees to be physically present together at the time of cashing with ID. If the check is payable to one or the other with "or" between the names, only one party needs to be present.
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Available in most states: Two-party check cashing at Walmart is available in all states except New Jersey due to legal restrictions there. In all other states, most Walmart stores with check cashing services can accommodate two-party checks.
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Limited to 3 checks per day: Walmart has a check cashing limit of 3 checks per customer per day, regardless of the type of check. Two-party checks will count towards this daily limit.
Risks and Challenges With Two-Party Checks
While Walmart does allow you to cash a two-party check up to $200, there are some inherent risks and drawbacks to be aware of with two-party checks in general:
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Both parties have to work together. If the check is made out to both payees, you‘ll need cooperation and coordination from the other person to get the check cashed. This can be difficult if you don‘t know the other party well or have a strained relationship with them.
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Limited cashing options. Not all banks or check cashing places are willing to cash two-party checks due to the increased risk of fraud. Your cashing options may be more limited compared to a regular check.
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Potential for disputes. If anything goes wrong or there are disagreements between the two payees, it can make accessing the money more challenging. The funds may get tied up or frozen if the check is in dispute.
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Lower dollar limits. As is the case with Walmart, many places put a lower limit on the size of two-party checks they are willing to cash, often around $200-$500. This may not be sufficient for large expenses.
For these reasons, two-party checks are best used only when necessary, such as court-ordered payments or insurance settlements requiring multiple payees. If possible, it‘s often easier to request separate checks or find an alternate payment method that doesn‘t involve a two-party check.
How to Cash a Two-Party Check at Walmart
If you do need to cash a two-party check and choose to do so at Walmart, the process is fairly straightforward. Here are the steps:
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Endorse the back of the check with both payee signatures. Make sure the signatures match the names written on the front of the check.
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Visit your local Walmart store and go to the customer service desk or Money Center. Let them know you‘d like to cash a two-party check.
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Present the endorsed check along with valid, government-issued photo IDs for both payees on the check (or one payee if the check is payable to either/or).
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Review and sign the receipt if you agree with the check amount and $4 fee for checks up to $200.
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Receive your cash and receipt. The cash can be provided in a variety of bills or loaded onto a Walmart MoneyCard if you have one for a $3 reload fee.
The whole process is typically quick and easy, and you‘ll walk away with your money right away. Just be sure to endorse the check properly and have ID handy for a smooth experience.
Other Places That Cash Two-Party Checks
While Walmart is a convenient and affordable option for cashing two-party checks, it‘s not your only choice. Here are some other places that may cash a two-party check and how they compare:
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Banks and credit unions: Some banks and credit unions will cash a two-party check even if you‘re not a customer, usually for a higher fee around $8-$10. If the check is drawn on an account at that bank, you may have better luck cashing it there. Banks tend to have higher limits but stricter ID requirements.
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Check cashing stores: Outlets like Amscot or local check cashing stores are often willing to cash two-party checks with a valid ID. Fees are usually the highest here at 2-3% of the check amount. Dollar limits vary but are often higher than Walmart.
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Grocery stores: Some grocery stores with service desks such as Kroger or Publix will cash two-party checks, depending on the location. Fees and limits are similar to Walmart at around $4-$6 for checks up to $200-$500 in most cases. ID is required.
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Issuing bank: Another option is to see if the bank the check is drawn on will cash it directly. You don‘t need to have an account there, but may need both parties present with ID. Fees vary but are often lower than other options.
Ultimately, Walmart is often the best bet for cashing small two-party checks due to their low $4 fee, convenient locations, and straightforward process. For larger two-party checks, it may be worth exploring a bank or other options. Always compare ID requirements, fees, and limits.
Alternatives to Two-Party Checks to Consider
Because of the added challenges of cashing a two-party check, it‘s worth considering if there are alternative payment methods that could work instead. Here are a few options to explore:
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Requesting separate checks. See if the issuer can write out two separate checks, one to each payee, instead of a single two-party check. This makes it much easier for each party to cash their portion on their own.
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Electronic transfer. Ask the payer if they can send the money via direct deposit, wire transfer, PayPal, Venmo or another electronic method instead of a physical check. This gets the money to each party faster without needing to cash a check.
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Mobile check deposit. If you have a bank account that allows mobile deposits, see if they will accept a photo of the two-party check through their app. This allows you to skip visiting a physical location to cash it.
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Sign the check over. If the two-party check is payable to you or the other party, see if the other payee would be willing to endorse the check over to you so you can deposit it into your own account without them present. Just be aware this comes with risks if the check bounces.
Considering these alternatives to a two-party check can often save time and hassle for everyone involved, especially for larger sums that exceed Walmart‘s $200 limit on two-party checks. Don‘t be afraid to ask the check issuer if there‘s a different way they can send the payment.
Summary
To recap, Walmart does cash two-party checks up to $200 for a fee of $4 as long as you have valid ID for both payees and meet their check cashing requirements. For checks payable to both parties, both people will need to be present to cash it at Walmart. For two-party checks payable to either party, only one payee needs to be present with ID to cash it.
While Walmart‘s two-party check cashing is convenient, low-cost and a good option for smaller checks, it‘s important to weigh the pros and cons of two-party checks and consider alternatives like separate checks or digital payments if possible.
If you do proceed with cashing a two-party check at Walmart, just follow the simple steps of endorsing the check, bringing it to the customer service desk with ID, and paying the $4 fee to walk away with your money in minutes.
Hopefully this guide has been helpful in breaking down everything you need to know about cashing two-party checks at Walmart and evaluating if it‘s the right choice for your situation. Always explore your options, ask questions, and protect yourself when dealing with multi-party checks.
