Do You Sign or Print to Endorse a Check?

A check endorsement is a signature, along with any additional instructions, on the back of a check that authorizes a bank to process it. This action confirms that the intended recipient approves the transfer of funds. Endorsing a check is a required step for depositing or cashing it, ensuring the transaction proceeds smoothly. The endorsement process helps financial institutions verify the recipient’s identity and prevents potential fraud.

The Basics of Endorsing a Check

To properly endorse a check, you should sign your name in the designated endorsement area on the back. This area is typically found on one end of the check, often marked with lines and instructions like “Endorse Here.” Your signature grants the bank permission to process the funds. It is important to use permanent ink, such as blue or black, for your signature.

Signing in cursive is the common method for endorsement. The signature should match the name as it appears on the front of the check. Endorse a check just before depositing or cashing it to minimize security risks. Leaving a check blank after endorsement makes it a bearer instrument, meaning anyone possessing it could cash or deposit it.

Understanding Different Endorsement Types

Various endorsement types offer different levels of security and control over a check’s use. A blank endorsement, the simplest form, involves only your signature on the back of the check. This makes the check payable to anyone holding it, similar to cash, and is the least secure option. Use it immediately before a deposit.

A restrictive endorsement limits the check’s use to a deposit only. A common example is writing “For Deposit Only” or “For Deposit Only to Account Number XXXXXXXXXX” above your signature. This ensures funds are credited to a specific account, adding security against theft or unauthorized cashing. For mobile deposits, many banks require “For Mobile Deposit Only” written along with your signature.

A special endorsement transfers the check’s payment to another specific person or entity. Write “Pay to the order of [New Payee’s Name]” and sign your name below it. This makes the check payable to the new designated party, who must also endorse it.

Addressing Common Endorsement Situations

When the payee’s name on a check is misspelled, first write the misspelled name as it appears on the check. Then, sign your correct legal name below it. This helps the bank reconcile the discrepancy, though asking for a corrected check is preferable for significant errors.

If the designated endorsement area on the back of the check is too small or already contains other markings, keep your signature within the allotted space. Banks require the area below the endorsement line to remain clear for their processing stamps. If additional instructions are necessary, write them clearly above your signature or in any remaining clear space.

For checks made out to multiple payees, the conjunction used between the names determines the endorsement requirement. If “and” connects the names (e.g., “John AND Jane Smith”), both individuals must endorse the check. However, if “or” is used (e.g., “John OR Jane Smith”), either individual can endorse the check independently. This distinction is important for proper processing and to prevent delays.