How to Endorse a Check & What Check Endorsement Means

If you do endorse it early, be sure to add a restriction such as “for deposit only” under your signature. To be endorsed correctly, the name signed on the back of the check needs to match the payee’s name on the front of the check. If your name was misspelled or written incorrectly, sign it with the incorrect version, and then sign again using your correct name. Next time you take an old school check in your hand, review its purpose and determine the proper endorsement.

The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. A debit card is a payment card connected to a checking account, and you can use it to make both online and in-person what is a financial statement detailed overview of main statements purchases, where cards are accepted. You’ll need to verify your identity when you deposit the check. Keep in mind that certain types of checks may require an endorsement even if your bank doesn’t. This method specifically instructs the bank that the check should be deposited into the account identified in the endorsement.

  • You may use a stamp with the company’s name and other identifying information.
  • Then, either let the teller know what you would like to do with the check or fill out a deposit slip.
  • This is an easier alternative to depositing the original check addressed to you, and then writing a new one to pay someone else (i.e., a supplier, a vendor, etc.).
  • For businesses, the only person who can endorse a check is the company’s owner, unless another employee has been authorized to manage the business finances.

Since 2011, millions of people have used Remitly to send money with peace of mind. Visit the homepage, download our app, or check out our Help Center to get started. You may run into this issue when you and your partner receive a paper check from the IRS or another government agency.

How to Endorse a Check

This is an easier alternative to depositing the original check addressed to you, and then writing a new one to pay someone else (i.e., a supplier, a vendor, etc.). This way you’re protected after the check is out of your hands, and you can avoid a possible security risk. If you find that the check isn’t legitimate, it’s best to destroy it right away. You may use a stamp with the company’s name and other identifying information.

However, defer to any check endorsing instructions that appear on the screen. Blank endorsement of a financial instrument, such as a cheque, is only a signature, not indicating the payee. Endorsing a check may seem like a straightforward process, but it’s crucial that you make sure it’s done correctly. Otherwise, there could be issues or delays with the transaction you’re trying to complete. To endorse an FBO check, both parties sign the check, starting with the payee.

Restrictive Endorsement by Account

Each institution has its own guidelines, and depending on its policies, institutions may require either or both parties to endorse the check before they deposit it. Endorsing a check is straightforward if you’re the only person listed on the “pay to the order of” line. The process becomes a little more complicated if two or more people’s names appear there.

With no endorsement, no one can see your signature or your account number unless your bank adds the account number during processing. One is a restrictive endorsement, in which the party writing the check notes “For deposit only” on the first line of the back of the check and then signs underneath. This form of a check may only be deposited into an account with the name specified on the check. Some banks prefer a check with a restrictive endorsement to have the recipient’s account number written clearly on the check, while others see this as a security risk. Keep in mind that banks take a risk when they cash this kind of check, because anyone can find a signed check and fill in the endorsement information. For this reason, not all banks and credit unions will accept checks with a special endorsement.

On the other hand, a check made out to a specific payee with the amount left blank can be useful in some settings. Many banks now allow you to deposit checks without leaving home. With a mobile banking app, you can deposit a check simply by photographing it, provided you endorse it properly.

If you don’t endorse a check, the bank won’t be able to process it. When someone pays you with a check, it’s like handing you cash; but there are few more steps involved. You can take that check to the issuing bank (the bank listed on the front of the check) and cash it or you can take it to your bank and deposit it into your account.

Blank Endorsements and Depositing Checks

You don’t have to go through your bank or credit union to order checks. Check costs may vary depending on the supplier and the style of check ordered. People will also do a blank endorsement when they’re depositing a check through an ATM or using mobile deposit. If you’re doing a blank endorsement, sign the check just before you deposit the check. Although these last 2 endorsements are common in business transactions, financial institutions usually have restrictive language in their Terms of Service (ToS) documents.

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That way, there’s less risk of the money falling into the hands of someone else. You usually need to sign your name, but you may want to add other information depending on what you want to do with the check. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

It can be a good idea to accompany this person to the bank to provide proof of identification. Banks frequently won’t accept checks endorsed this way unless the payee is present. Make sure your signature and any other information, such as your checking account number, fit within the designated endorsement area. Banks might not accept checks where the endorsement goes beyond this space.

This means if the date is miswritten, or it appears as though the check is more than six months old, the recipient cannot cash it. Errors in the payee’s name will also prevent you from cashing the check. When you sign over a check to a third person, you need to realize that the check funds will no longer be going to you but to the person you name in the endorsement. For this reason, you need to be clear about what’s happening and only use a third-party endorsement with people you trust. In the 21st century, only a few of us often go into a bank to deposit checks.

You do a blank endorsement by simply signing your name on the back of the check. Then, when you’re at the bank, you tell the teller if you want to cash it or deposit it. A blank endorsement is a signature on a financial instrument such as a check. No payee is specified, so any holder of the instrument could claim payment. The signature essentially turns the instrument into a bearer security.

For example, If the check is written out to “Jane and John Doe,” both parties must endorse the check. However, if the check is made out to “Jane or John Doe,” then either party can endorse the check. There are times when a check is made out to multiple people, such as a parent and child or a couple as a wedding gift. Bank reconciliation, or balancing your checkbook, can help you track checks and other transactions each month. This helps ensure every transaction is accounted for and provides a better picture of your financial health. Checks may seem outdated in this digital age, but sometimes they’re the preferred payment method.

The good news is that it is easy, but it’s important to be sure that your check is properly endorsed. It will decrease any holdups with the money being transferred to your small business’s mobile bank account and it prevents fraud. As a result, it’s wise to get endorsement instructions from your bank or credit union before you endorse the back of the check. These additional steps help reduce the opportunity for fraudulent check cashing or theft.