Can Someone Sign Over a Check to You?

Checks remain a common method for exchanging funds, even with the rise of digital payments. A check’s value can be transferred to another individual through a process known as “signing over” or endorsing the check. This article explains how checks can be endorsed and transferred between parties.

Understanding Check Endorsement

Check endorsement involves signing the back of a check, a necessary step before it can be cashed, deposited, or transferred. This signature serves as an authorization, confirming that the person named as the payee on the check is authorizing the transaction. It validates the check’s authenticity and helps financial institutions mitigate the risk of fraud.

Without this step, banks lack the necessary authorization to process the check. This process is a fundamental part of check processing, enabling the secure movement of funds from the check’s issuer to the intended recipient.

Endorsing a Check for Transfer

If you receive a check and wish to transfer its value to another person, you can do so through a special endorsement, sometimes called a third-party endorsement. Begin by locating the endorsement area on the back of the check, typically a designated space marked “Endorse Here.” In this area, you, as the original payee, will first write “Pay to the order of [New Payee’s Name].”

Immediately below this phrase, you must sign your own name exactly as it appears on the front of the check. If your name is misspelled on the check, first sign it with the incorrect spelling, then sign your correct name underneath. Your signature must match the name on the front of the check to avoid processing issues.

Accepting an Endorsed Check

As the recipient of an endorsed check, often referred to as a “third-party check,” you will need to take specific steps to deposit or cash it. First, verify that the original payee has correctly endorsed the check by writing “Pay to the order of [Your Name]” and signing their name below it. Once confirmed, you must then endorse the check yourself by signing your name below the original payee’s signature.

Financial institutions may have varying policies regarding third-party checks due to fraud concerns, so it is advisable for you or the original payee to contact your bank beforehand to confirm their acceptance policy. When presenting the check, banks often require you to provide government-issued photo identification to verify your identity. Some banks might even request that both the original payee and the new recipient be present during the transaction.

Checks That Cannot Be Endorsed

While many checks can be endorsed for transfer, certain types or conditions may restrict this ability. Checks explicitly marked with phrases like “Pay to the order of [Payee’s Name] Only,” “Non-Transferable,” or “Not Negotiable” are not eligible for third-party endorsement. These markings indicate that the funds are intended solely for the named payee and cannot be transferred to another party.

Government-issued checks, such as tax refunds or Social Security payments, often have strict rules against third-party endorsement. These checks typically require direct deposit into an account in the payee’s name. Financial institutions reserve the right to reject any check based on their internal policies or if they suspect fraud, even if it appears to be correctly endorsed. This discretion helps banks manage the inherent risks associated with check transactions.