How to Endorse a Check for Deposit or Cash

A check endorsement is a signature on the back of a check, along with any additional instructions, that authorizes a financial institution to process the check for deposit or cashing. This action serves as a security measure, verifying the intended recipient and granting permission for the funds to be transferred. Properly endorsing a check is a necessary step for ensuring the smooth and secure movement of funds from the check’s issuer to the recipient’s account.

Understanding Basic Check Endorsement

The signature should be placed within the designated endorsement area, typically found on the top left edge of the back of the check, often labeled “Endorse Here.” This specific placement leaves sufficient space for bank processing stamps.

A simple signature on the back of a check creates what is known as a “blank endorsement.” This type carries the least security because a check with a blank endorsement becomes payable to whoever possesses it, similar to cash. Therefore, it is advisable to complete a blank endorsement only immediately before you are ready to deposit or cash the check, reducing the risk if the check is lost or stolen.

Choosing an Endorsement Type

Selecting the appropriate endorsement type is important for both security and the intended use of the check. For increased security, a restrictive endorsement limits how the check can be used. The most common restrictive endorsement is “For Deposit Only.” To apply this, write “For Deposit Only” followed by your account number or “For Deposit Only to [Account Holder Name]” above your signature on the back of the check. This ensures the funds can only be deposited into the specified account, preventing it from being cashed by anyone else.

A special endorsement, also known as a third-party endorsement, allows you to transfer the check to another person or entity. To do this, write “Pay to the Order of [Third Party Name]” followed by your signature. This action makes the specified third party the new payee, who can then deposit or cash the check, though some banks may have specific requirements or limitations for accepting such endorsements.

Endorsing in Special Situations

When a check is made out to multiple payees, the wording between their names determines the endorsement requirement. If the names are joined by “and,” such as “John AND Jane Doe,” all listed payees must endorse the check. Conversely, if the names are joined by “or,” like “John OR Jane Doe,” only one of the listed payees is typically required to endorse the check.

For checks made out to a business, an authorized representative must endorse the check on behalf of the company. This usually involves writing the business name as it appears on the check, followed by the authorized signer’s signature and their title, such as “Owner” or “Accountant.” Adding a restrictive endorsement like “For Deposit Only” is a common practice for business checks to enhance security.

When making a mobile deposit using a banking app, specific endorsement instructions are often required by the financial institution. Many banks require you to write “For Mobile Deposit Only” directly beneath your signature on the back of the check. Some banks may also request additional details, such as the account number, to be included with this endorsement.

If a check is made out to a deceased person, it becomes part of the deceased person’s estate and requires legal processes to handle them. An executor or administrator of the estate, once legally appointed, would endorse the check, often by writing “Payable to the estate of [name of decedent]” and then depositing it into an established estate bank account. Consultation with the bank and legal counsel is advisable for checks made out to a deceased individual.