How to Fill Out the Back of a Check to Deposit or Cash

Checks remain a common method for receiving funds. To access the money, you must endorse the check. Proper endorsement ensures funds are handled correctly and securely for deposit or cashing.

Understanding Check Endorsement

Endorsing a check involves signing its back to authorize a transaction, transferring ownership of the funds. This validates the check and permits the bank to process it. The endorsement area is typically a blank space at the top of the check’s back, sometimes marked “Endorse Here.” Signing confirms you are the intended recipient and authorizes the bank to process the check. Without proper endorsement, banks will likely refuse to process the check, leading to unnecessary delays.

Common Endorsement Types

Different situations call for specific endorsement types, each with varying implications for security and use. The most common is a blank endorsement, where you simply sign your name on the back. While easiest, it carries the highest risk; once signed, the check becomes a “bearer instrument,” meaning anyone can cash or deposit it. Use a blank endorsement only when immediately ready to deposit or cash the check at a bank.

A more secure option is a restrictive endorsement, which limits the check’s use. This typically involves writing “For Deposit Only” or “For Deposit Only to Account # [Your Account Number]” above your signature. This instruction ensures the check can only be deposited into the specified account, preventing it from being cashed or transferred. This method adds a layer of security, particularly when depositing checks via mail or mobile app.

A special endorsement, also known as a full endorsement, allows you to transfer the check to another person or entity. To do this, write “Pay to the Order of [New Payee’s Name]” followed by your signature. This makes the check payable to the new individual or business, who must then endorse it to cash or deposit. Banks may have specific requirements for accepting third-party checks, sometimes requiring the original payee’s presence.

Step-by-Step Endorsement Process

Endorsing a check involves a few straightforward steps. Turn the check over to locate the endorsement area, usually at the top of the back and marked “Endorse Here.” Use a pen, preferably blue or black ink, as other writing instruments or colors may result in processing issues.

Sign your name in the designated space exactly as it appears on the “Pay to the Order of” line. If your name is misspelled, endorse it with the incorrect spelling first, then sign your correct name directly below it. This ensures continuity and avoids potential complications with the bank.

If using a restrictive or special endorsement, write the additional information like “For Deposit Only” or “Pay to the Order of [New Payee’s Name]” above your signature. After endorsing, leave sufficient space below your signature and any added instructions. This area is typically reserved for bank stamps and processing information, often indicated by “Do not write, stamp, or sign below this line.”

Important Details for Endorsing Checks

Several specific scenarios require particular attention when endorsing checks. If a check is made out to multiple payees, the wording between their names dictates who must endorse it. If “and” is used (e.g., “John AND Jane Smith”), both individuals generally need to endorse the check. If “or” is used (e.g., “John OR Jane Smith”), either person can endorse it.

For checks made payable to a business, an authorized representative must endorse the check on the business’s behalf. This involves writing the business name exactly as it appears on the payee line, followed by the authorized person’s signature and their title within the company, such as “Owner” or “Accountant.” Restrictive endorsements like “For Deposit Only” are also commonly added for business checks.

If a mistake is made while endorsing, such as a signature error, it may be possible to cross out the mistake and initial it, but banks may have varying policies, and in some cases, a new check might be required. It is generally advisable to endorse a check only when you are ready to deposit or cash it. This practice minimizes the risk of fraud if the check is lost or stolen after being endorsed, as an unendorsed check is less easily negotiable.