third-party check

third-party check definition - business

third-party check

A check that has been endorsed once and is being cashed or deposited by a second endorser. For example, a check on First Valdosta Bank is made out to Bill, who endorses the check and gives it to Karin, who then endorses the check for deposit to her account. Many businesses do not accept payment by third-party checks.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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