What Do You Write on the Back of a Check?

Check endorsement is signing the back of a check to authorize its negotiation. This process helps banks verify the intended recipient of the funds and process the payment securely. Without proper endorsement, a check typically cannot be converted into cash or deposited into an account, serving as a security measure against fraud. It transfers ownership of the check from the payee to a financial institution or another party.

Endorsing for Yourself

Endorsing a check for your own use, whether for cashing or depositing, involves a straightforward signature. The endorsement should be placed on the back of the check, usually within the designated endorsement area. Your signature should match the name printed on the “Pay to the Order of” line on the front of the check.

Use permanent ink, such as blue or black, to ensure legibility of the signature. If your name is misspelled on the check, first sign it exactly as it is misspelled, then sign your correct name directly below it. Some financial institutions may request additional information, such as your account number or phone number, to be written below your signature for internal verification purposes. This standard endorsement makes the check payable to anyone in possession of it, so endorse the check immediately before cashing or depositing to reduce the risk of loss or theft.

Endorsing for Deposit Only

A restrictive endorsement for deposit only is a secure method, especially when not immediately cashing a check. This method limits the check’s use, ensuring it can only be deposited into a specified account. To do this, you write “For Deposit Only” on the back of the check, typically above your signature.

You should also include the account number where the funds should be deposited, usually directly below the “For Deposit Only” phrase, and then sign your name underneath this information, all within the endorsement area. This specific wording prevents anyone else from cashing the check, even if it is lost or stolen, and directs the funds to your designated account, adding a layer of security. While some banks may accept “For Deposit Only” without an account number, adding the account number makes the endorsement even more restrictive and secure. This type of endorsement is recommended when mailing a check or using mobile deposit, as it reduces the risk of unauthorized access.

Endorsing to Another Person

Endorsing a check to transfer its ownership to a third party is a less common practice and involves specific instructions. To do this, the original payee writes “Pay to the Order of [Name of New Payee]” on the back of the check. This phrase must be followed by the original payee’s signature, signed exactly as their name appears on the front of the check.

Once endorsed in this manner, the check becomes payable to the new named individual, who then must also endorse the check by signing their name below the original payee’s endorsement to cash or deposit it. Not all banks accept third-party checks due to increased fraud risks, and policies can vary significantly between financial institutions. Therefore, it is prudent for the new intended recipient to verify with their bank whether such an endorsement will be accepted before attempting to cash or deposit the check.