What Does c/o Mean on a Check for the Payee?
Clarify the meaning of "c/o" on checks. Discover its function in directing payments and its implications for handling and depositing funds.
Encountering “c/o” on a check can cause confusion about the intended recipient and how funds are handled. This common banking abbreviation appears in various contexts, influencing how payments are directed and received. Understanding its meaning is important for both the sender and recipient.
The Meaning of “c/o”
The abbreviation “c/o” stands for “care of.” It indicates an intermediary for mail or delivery. This means an item is intended for a specific person or entity but is sent to another’s address. It implies delivery responsibility, not ownership or a change in the intended recipient. The “care of” notation informs the postal service that the addressee is not the primary recipient at that location.
“c/o” in Check Payee Lines
When “c/o” appears in the payee line, such as “John Doe c/o Jane Smith,” the check is legally payable to the person or entity listed before “c/o” (John Doe). The person or entity after “c/o” (Jane Smith) physically receives the check but is not the legal payee. This arrangement is common for checks issued to minors, payments directed to individuals at a business address, or funds sent to someone residing at another person’s home. The “c/o” party facilitates the delivery of the check to the actual payee.
“c/o” in Check Address Information
If “c/o” is solely within the address portion of a check and not in the payee line, it functions purely as a mailing instruction. For example, a check payable to “John Doe” with the address “123 Main St c/o Jane Smith” indicates John Doe’s mail should be delivered to Jane Smith’s address. In this scenario, “c/o” has no bearing on who the check is legally payable to; John Doe remains the sole payee.
Endorsing and Depositing Checks with “c/o”
Regardless of where “c/o” appears, the legal payee must endorse the check for deposit or cashing. This means the person or entity named before “c/o” in the payee line, or the sole payee if “c/o” is only in the address, is the only one authorized to sign the back. Banks typically require an endorsement from the legal payee to process the transaction. The individual or entity listed after “c/o” in the payee line generally cannot endorse the check unless they are also the legal payee or possess specific legal authority, such as a power of attorney. If the legal payee is a minor, a parent or guardian might endorse the check “for deposit only” or “as guardian for [minor’s name]” to facilitate the transaction.