What Is MP on a Check and What Should You Do?

Checks remain a common financial instrument for both individuals and businesses, facilitating payments and transfers. These paper documents sometimes feature various notations, codes, or abbreviations that can appear confusing to someone unfamiliar with banking and financial processing. Understanding these markings helps in correctly handling the check and ensuring its proper transaction.

The Meaning of MP

When “MP” appears on a check, it typically means “Missing Payee” or “Multiple Payees.” The payee field, where the recipient’s name is written, is a fundamental and legally significant component of a check. It identifies to whom the funds are payable, which is crucial for a check’s validity as a negotiable instrument. Financial institutions depend on clear and accurate payee information to process checks correctly and to prevent fraudulent activity. If the payee details are unclear or absent, the check cannot be legally negotiated or deposited.

Reasons for MP on a Check

A check might be marked “Missing Payee” if the issuer leaves the “Pay to the Order of” line blank or if the name is illegible. Such omissions mean the check lacks a designated recipient, making it an incomplete order for payment. For example, a check with a scribbled, unidentifiable name could be flagged.

The “Multiple Payees” notation arises when several names are listed in the payee field without clear conjunctions. Writing “John Smith Mary Jones” instead of “John Smith AND Mary Jones” or “John Smith OR Mary Jones” creates ambiguity about who can endorse and cash the check. Automated check processing systems are designed to identify these ambiguities, leading to the “MP” designation.

Actions to Take for an MP Check

If you receive a check marked “MP,” it is important not to alter it yourself. Attempting to fill in or change the payee name can invalidate the check and potentially lead to fraud allegations. Altering a check without the issuer’s authorization may result in the check being dishonored. Banks have specific policies against unauthorized modifications to checks.

The recommended action is to contact the check issuer immediately to clarify the correct payee information. The issuer will typically need to void the original check and issue a new one with accurate and unambiguous payee details. Financial institutions generally refuse to process checks with missing or ambiguous payee information, and they will likely return the check. This often results in a returned item fee, which can range from approximately $10 to $50, depending on the bank.