How do we cash a draft made out to someone else if its returned to us?

If a draft made out to someone else is returned to you, you typically cannot cash it directly unless you have the payee's endorsement. To cash it legally, the payee must sign the back of the draft, endorsing it to you. Once endorsed, you can then deposit or cash the draft at a bank. Alternatively, you may contact the issuer of the draft to see if they can reissue it in your name.