Two-party check cashing refers to the process of cashing a check made out to two different parties. If the word "and" appears between the two names, both parties must typically be present to cash the check. If the word "or" is present, either party can cash the check alone.
Cashing a two-party check is not very different from cashing a regular check. People can generally cash two-party checks at banks where they maintain accounts or at the bank from which the check originated. The bank might charge fees if the people cashing the check are not account holders or ask them to submit proper identification.
Check-cashing services can also generally cash two-party checks with proper identification and payment of the appropriate fee. Check-cashing centers may charge flat fees or percentages of the check amount, so consumers should always compare fees from different providers before cashing checks. Check-cashing services may also be more lenient about cashing two-party checks than banks. For instance, Joe Smith might be able to cash a check made out to "Joe Smith and Jane Smith" even if Jane is not present, as long as she has properly endorsed it.
Recipients of two-party checks can also choose to endorse and deposit the checks into bank accounts rather than cash them.