How to Correctly Endorse a Personal Check

Endorsing a personal check involves signing the back of the document, authorizing its payment or transfer. This is a necessary step for banks to process the check, confirming you are the intended recipient. Proper endorsement helps prevent fraud and ensures funds reach their correct destination.

Endorsing a Check for Yourself

The most common method for endorsing a check for your own use is a blank endorsement. Locate the designated endorsement area on the back of the check, typically at the top. Sign your name exactly as it appears on the “Pay to the Order of” line on the front. This signature authorizes any holder to cash or deposit the check. For security, sign the check only immediately before you plan to deposit or cash it, as a blank-endorsed check can be processed by anyone if lost or stolen.

Endorsing for Deposit Only

A more secure way to endorse a check is with a restrictive endorsement, which limits how the check can be used. This endorsement ensures funds can only be deposited into a specific account, significantly reducing risk if the check is lost or stolen. To do this, write “For Deposit Only” or “For Deposit to Account #[Your Account Number]” above your signature in the endorsement area. This directs the bank to deposit the check’s full value into your account. While including your account number adds security, “For Deposit Only” alone is sufficient to restrict its use.

Endorsing a Check to Someone Else

Transferring a check to another person or entity involves a special endorsement, sometimes called a third-party endorsement. This allows you, as the original payee, to direct the funds to a different recipient. Write “Pay to the Order of [New Payee’s Name]” in the endorsement area, followed by your signature. The new payee must then endorse the check before depositing or cashing it. Not all banks accept third-party endorsements due to fraud risks; confirm their policy beforehand.

Addressing Common Endorsement Situations

Several common scenarios can complicate check endorsements. When a check is made out to multiple payees, the conjunction used on the “Pay to the Order of” line dictates the endorsement requirement. If “and” is used (e.g., “John and Jane Doe”), all listed payees must endorse the check. If “or” is used (e.g., “John or Jane Doe”), only one of the named individuals needs to provide an endorsement.

If your name is misspelled on a check, endorse it by first writing the misspelled name exactly as it appears on the check, then signing your correct legal name directly below it. For minor discrepancies, banks accept this dual endorsement, but for significant errors, it may be best to request a new check from the issuer. If you make a mistake while endorsing, like signing in the wrong place, it is recommended to cross out the error, initial it, and re-sign correctly within the designated endorsement area. Some banks may require a new check if the error is substantial or if the check appears altered.

Always ensure your endorsement, and any additional instructions, remain within the designated endorsement area, typically a 1.5-inch space at the top of the check’s back. Signing outside this area or placing too much information can cause issues with bank processing equipment or lead to delays. For mobile deposits, many banks require specific phrasing like “For Mobile Deposit Only” in addition to your signature; always verify your bank’s specific mobile deposit endorsement requirements.