What Is the Endorse Here For on a Check?

An endorsement on a check is a signature, stamp, or written instruction on the back of the check that authorizes the transfer of funds or specifies how it should be handled. This process is completed in a designated area, often marked “Endorse Here.” The purpose of endorsing a check is to enable it to be cashed, deposited, or transferred to another individual or entity.

Standard Endorsement

The most common type of endorsement is a blank endorsement, which involves only the payee’s signature. The individual whose name is on the “Pay to the Order Of” line signs their name on the back of the check. This area is typically a blank space or a line at the top of the back of the check, often with a “Do Not Write, Stamp, or Sign Below This Line” instruction.

Signing the check with a blank endorsement makes it a “bearer instrument,” meaning it can be cashed or deposited by anyone who possesses it. For this reason, it is advisable to only endorse a check with a blank endorsement immediately before depositing or cashing it to minimize the risk if the check is lost or stolen. The signature should match the name as it appears on the front of the check; if there is a misspelling, sign it with the incorrect spelling first, then sign with the correct spelling below.

This method is typically used when depositing a check into one’s own bank account or cashing it at a financial institution. It authorizes the bank to process the transaction. Many banks suggest using permanent ink, such as blue or black, for all endorsements.

Specific Endorsement Methods

A restrictive endorsement limits what can be done with a check, making it a more secure option, especially when a check is mailed or not immediately deposited. The most common form of this endorsement is “For Deposit Only,” often followed by the payee’s signature and sometimes their account number. This instruction ensures that the check can only be deposited into the specified account and cannot be cashed by anyone.

To apply a restrictive endorsement, write “For Deposit Only” on the back of the check, above your signature. Some individuals also include their bank account number. This method is particularly useful for mobile deposits, where some banks may require “For Mobile Deposit Only” to be written alongside the signature.

A special endorsement, also known as a full endorsement, is used when the original payee wants to transfer the check to another specific person or entity. This involves writing “Pay to the Order of [New Payee’s Name]” on the back of the check, followed by the original payee’s signature. This action effectively transfers ownership of the check to the new payee, who then must also endorse the check to deposit or cash it.

While special endorsements allow for the transfer of funds without the original payee first cashing the check, some banks may have specific policies regarding third-party checks. It is advisable to confirm with the recipient’s bank if they will accept such an endorsement before proceeding. This method is generally used when the original payee intends to use the check to pay a debt or transfer funds directly to someone else.

Endorsing Checks with Multiple Payees or for Businesses

When a check is made out to multiple payees, the required endorsements depend on how the names are listed. If the names are joined by “and” (e.g., “John Doe AND Jane Smith”), generally both individuals must endorse the check for it to be processed. This applies even if an ampersand (&) symbol is used instead of the word “and.”

If the names are joined by “or” (e.g., “John Doe OR Jane Smith”), typically only one of the named individuals needs to endorse the check. If the wording is ambiguous, such as “John Jane,” banks may treat it as an “or” scenario, allowing either party to endorse. For security and clarity, it is often recommended that all named payees be present with identification if both signatures are required for deposit.

For checks made out to a business, an authorized representative must endorse the check on behalf of the company. The endorsement should include the business name exactly as it appears on the “Pay to the Order Of” line, followed by the authorized individual’s signature and their title within the company. For example, “ABC Corp., For Deposit Only, [Authorized Signature], Owner.”

Many businesses utilize endorsement stamps that include the company name and “For Deposit Only” to streamline the process for checks received. This practice helps ensure that checks are deposited correctly and securely into the business’s account.