Does your bank allow one person to transfer or to deposit funds into an account owned by another person?

If so, what limitations or procedures are followed?

Our bank allows depsoits or transfers to the second person's account if the first person knows the account number. We do not provide the first person with a receipt for the deposit, but mail the receipt to the second account's owner.

Your procedure seems sound. I don't know that we've ever transferred funds between accounts but the OTC transactions is what we do.

I may not be understanding this correctly but here is something to think about.

What would happen if I owed your customer $3,000.00 and decided to only pay $1,500.00. Knowing the customers account number I could deposit a check with a qualified endorsement saying "For Payment in Full of x"

I wouldn't care if you gave me a reciept. When the your customer gets the reciept what can he do about it? You have accepted a deposit from someone not authorized by the depositor to do business on the account. (Per signature card agreement)

I claim your depositor accepted the lessor amount and have a cancelled check that says he did. There is a possibility of being liable for the difference to your depositor or drug into a legal situation.

How do you check for a con artist that knows a depositors account number, and deposits stolen or fradulent checks and takes a less cash on the deposited amount?

I know we've had this discussion before and there are some risks to be managed here. But are we going to verify the source of the deposit? What if it was mailed in? It could have that same memo note and be from our customer. If you delay depositing the item you could have fees and NSFs against the customer. I recall a bank saying that agreement notation happened to them. I can't say what the likelihood is of that or that a ruling would go against the bank or customer is such case. Others said the notations were moot, as I recall. I couldn't easily find the thread, but I think this comes down to risk management and customer service. (I also don't know how often deposits are made for others?)

Don -- thank you for your help.

Re: cash back

We require an account owner's signature on cash back deposits.

Re: partial payment of debt

This does appear to be a risk we are taking, perhaps unwittingly.