How to Endorse a Check: What to Write on the Back

Endorsing a check is a fundamental step in depositing or cashing it. This process involves signing the back of the check, which signifies your approval to transfer its ownership or to instruct your bank on how to handle the funds. Proper endorsement helps ensure your financial security and allows for the efficient processing of your payment.

Understanding Endorsement Types

Different situations call for specific types of check endorsements. A blank endorsement is the simplest form, requiring only your signature on the back. While convenient, this method makes the check payable to anyone who possesses it, carrying a higher risk if lost or stolen. It is recommended to use a blank endorsement only immediately before depositing or cashing the check.

A restrictive endorsement limits how the check can be used, adding a layer of security. For example, writing “For Deposit Only” above your signature ensures the check can only be deposited into an account. For greater security, you can specify “For Deposit Only to Account # [your account number]” to direct the funds to a particular account. This type of endorsement protects against unauthorized use.

A special endorsement allows you to transfer the check’s ownership to another person or entity. To do this, write “Pay to the Order of [New Payee’s Name]” above your signature. This designates a new recipient for the funds. Some banks may have policies regarding the acceptance of such third-party checks due to potential fraud risks.

Applying Your Endorsement

Physically endorsing a check involves precise placement and clear writing. Locate the endorsement area on the back of the check, typically on the left-hand side near the top. This area often includes a line or a box marked “Endorse Here,” with an instruction like “Do Not Write Below This Line.” Your signature and any accompanying instructions must remain within this designated space.

For a blank endorsement, sign your name exactly as it appears on the check’s front within the endorsement box. For a restrictive endorsement, write “For Deposit Only” or “For Deposit Only to Account # [account number]” above your signature, then sign below. For a special endorsement, write “Pay to the Order of [New Payee’s Name]” above your signature, followed by your own signature. Use blue or black ink and ensure your signature is clear and legible.

Handling Specific Scenarios

If a check is made out to multiple payees, endorsement requirements depend on how their names are listed. If names are joined by “and” (e.g., “John AND Jane Doe”), both individuals must endorse. If joined by “or” (e.g., “John OR Jane Doe”), either individual can endorse the check.

For checks made payable to a business, an authorized representative must endorse on behalf of the company. This involves writing the business name exactly as it appears on the check, followed by the authorized individual’s signature and their title (e.g., “[Business Name], By: [Your Signature], [Your Title]”).

If the name on the check does not exactly match your legal name or identification, such as a misspelling, you should endorse the check by first signing the name as it appears on the check. Immediately below that, sign your correct legal name. This dual signature clarifies that you are the intended recipient. For third-party endorsements, where you sign a check made out to you over to someone else, write “Pay to the Order of [Third Party’s Name]” and then sign your own name below it. The third party should confirm with their bank beforehand, as some financial institutions may not accept these checks due to the increased risk of fraud.