How to Properly Write an Endorsement on a Check

A check endorsement is a signature on the back of a check, which legally transfers the funds or authorizes a bank to process the payment. It serves as a verification that you are the rightful owner of the check and are instructing the financial institution on its handling. Proper endorsement is essential for a smooth and secure transaction.

Understanding Endorsement Basics

The most straightforward method for endorsing a check is known as a blank endorsement. To perform this, you simply sign your name on the back of the check, typically within the designated endorsement area. This area is usually found at the top of the back of the check and may be labeled “Endorse here” or feature a line for your signature. Sign your name exactly as it appears on the “Pay to the Order of” line on the front of the check.

A blank endorsement transforms the check into a bearer instrument. This characteristic makes it similar to cash, carrying a higher security risk. Therefore, it is advisable to only endorse a check with a blank endorsement immediately before you are ready to deposit or cash it.

Specific Endorsement Methods

Beyond the basic blank endorsement, two other methods offer increased control and security over your funds: restrictive and special endorsements. Understanding these options provides flexibility and protection for your financial dealings.

A restrictive endorsement limits how a check can be used by directing it for deposit only into a specific account. To execute this, you write “For Deposit Only” and often include your account number below your signature on the back of the check. This type of endorsement prevents anyone from cashing the check, even if it is lost or stolen. It ensures that the funds can only be credited to the specified bank account.

A special endorsement allows you to transfer the check to another person or entity. To do this, you write “Pay to the Order of [New Payee Name]” on the back of the check, and then sign your name below this phrase. The designated new payee must then also endorse the check to cash or deposit it. Some banks may be hesitant to accept third-party checks due to potential fraud concerns.

Addressing Common Endorsement Situations

Navigating various scenarios when endorsing checks requires specific knowledge to ensure proper processing. Different situations, such as checks made out to multiple people or those intended for mobile deposit, have unique requirements. Addressing these common situations correctly prevents delays and potential issues with your financial transactions.

When a check is made out to multiple payees, the conjunction used dictates who must endorse it. If the names are joined by “and” (e.g., “John and Jane Doe”), both individuals typically must endorse the check for it to be processed. However, if the names are separated by “or” (e.g., “John or Jane Doe”), either individual can endorse the check.

For mobile deposits, banks often require an additional restrictive endorsement to be written on the back of the check. This usually involves writing “For Mobile Deposit Only” or “For Mobile Deposit Only [Bank Name]” below your signature. This specific wording helps financial institutions identify checks submitted through mobile channels. Always consult your bank’s specific mobile deposit guidelines, as requirements can vary.

If you make an error while endorsing a check, such as signing in the wrong place or misspelling your name, avoid using correction fluid or heavily scratching out the mistake. For minor errors, you might draw a single line through the incorrect endorsement and then re-sign correctly. If there is a slight discrepancy in your name on the check (e.g., “John A. Doe” versus “John Doe”), you should endorse it as written on the check first, then sign your correct legal name below. For significant errors, it is often best to request a new check from the issuer to avoid potential processing issues.