How to Properly Endorse a Check for Deposit

A check endorsement is signing the back of a check to authorize its transfer or deposit into a bank account. This signature confirms you are the intended recipient and grants permission for the bank to process the transaction. It is a fundamental step that makes the check legally transferable, allowing funds to move from the payer’s account to yours. Without proper endorsement, a bank may not accept the check for deposit or cashing.

Blank Endorsement

The blank endorsement is the simplest method for signing a check. It involves the payee signing only their name on the back, usually within the designated endorsement box. This makes the check a “bearer instrument,” meaning anyone who possesses it can potentially cash or deposit it.

This simplicity, while convenient, carries a significant security risk. If a blank-endorsed check is lost or stolen before deposit, it could be used by an unauthorized individual. Therefore, it is advisable to apply a blank endorsement only when you are immediately ready to deposit or cash the check.

Restrictive Endorsement

A restrictive endorsement is the most secure way to endorse a check, limiting its use strictly to deposit. To execute this, the payee writes “For Deposit Only” or “For Deposit Only to Account #[Account Number]” above their signature. This ensures the check cannot be cashed by anyone, even if lost or stolen; it can only be deposited into the specified account. Placing this instruction clearly above your signature provides an added layer of protection. This method is particularly beneficial for mitigating risks associated with mailing checks or depositing them through ATMs or mobile apps, where the check might be out of your immediate control.

Special Endorsement and Variations

Special endorsements allow a payee to transfer a check to another specific person or entity. The original payee writes “Pay to the Order of [New Payee’s Name]” above their signature. This signs the check over, making the new payee the authorized recipient of the funds. Not all banks readily accept third-party checks, and some may require both parties to be present for the transaction.

When endorsing a check made out to a business, an authorized signatory must act on the company’s behalf. This involves writing the business name exactly as it appears on the payee line, followed by their signature and official title. This ensures proper authorization. For checks with a name discrepancy, such as a misspelling, the payee should first endorse the check exactly as the incorrect name appears. Then, immediately below or next to this, they should sign with their correct legal name as it appears on their bank account. This two-signature approach clarifies the intended recipient despite the initial error.

Key Considerations for Endorsing Checks

Proper placement of your endorsement is important for smooth processing. Always sign within the designated endorsement area on the back of the check, typically a box at one end. Avoid writing outside this area or over other printed information, as this could lead to processing delays or rejection. Use permanent ink, such as black or blue, to prevent alterations and ensure your signature is clearly legible.

If you make a mistake while endorsing, such as a smudge or incorrect signature, do not scratch it out completely. Instead, initial neatly next to the correction to indicate it was an intentional change. For significant errors, contacting your bank for guidance or requesting a new check may be necessary.

For checks deposited via mobile banking applications, many banks have specific requirements beyond a standard signature. Some may require additional wording like “For Mobile Deposit Only” or “For Mobile Deposit Only at [Bank Name]” to be written below your signature. Always check your specific bank’s mobile deposit instructions, as these requirements can vary.