Do You Have to Sign Checks You Write?

A check functions as a written instruction to a bank, directing it to transfer a specific sum of money from one account to another. This financial instrument allows for transactions between parties without requiring physical currency. Checks serve as a tangible record of payment, which can be useful for accounting purposes and tracking expenses. While digital payment methods have become prevalent, checks remain a relevant tool for many individuals and businesses.

The Signature Requirement

A signature is a mandatory component for a check to be considered a valid and legally binding financial instrument. It serves as the check writer’s explicit authorization for their bank to release the specified funds to the payee. Without this signature, a check lacks the necessary consent from the account holder and is generally deemed invalid. The Uniform Commercial Code (UCC), which governs negotiable instruments like checks in the United States, outlines the requirement for the drawer’s signature for validity. This signature also plays a significant role in preventing fraud, as banks often verify it against the signature on file for the account.

Proper Placement of Your Signature

The designated area for your signature on a check is typically located on the bottom right-hand corner. This specific placement is standard across most check formats, next to or below the memo line. The signature should be consistent with how the account holder normally signs documents, allowing the bank to verify its authenticity. While a signature does not need to be perfectly legible, it should be recognizable enough for bank verification processes. Using a permanent ink, such as blue or black, is a recommended practice to ensure the signature’s durability and prevent alteration.

Consequences of an Unsigned Check

Presenting a check without a signature will result in its rejection by the bank. Financial institutions are not obligated to honor unsigned checks, as they lack authorization from the account holder. This rejection means the check will “bounce,” leading to implications for both the writer and the recipient.

The check writer may incur fees from their bank for invalid checks, typically ranging from $20 to $35 per returned item. For the recipient, the consequence is non-receipt of funds, causing delayed payment and inconvenience. Rectifying an unsigned check involves the writer signing and re-issuing a new check, or the recipient returning the check for the original signature to be added.