What to Put on the ‘Endorse Here’ Line of a Check

Endorsing a check is a fundamental step in financial transactions, authorizing a bank to process payment. It involves signing the back of a check, transferring ownership from the payee to a financial institution or another party. This act is a necessary security measure, ensuring proper handling and processing of funds.

Standard Endorsement

The most common check endorsement requires only the payee’s signature. This simple signature is typically used when depositing a check into one’s own account or cashing it. Place the signature on the back, usually within the designated “endorse here” area, or in the top portion if no specific line is present.

Sign the check exactly as the payee’s name appears on the front. For instance, if the check is made out to “John A. Doe,” the endorsement should match that spelling. This ensures consistency and helps the bank verify identity.

A blank endorsement, solely the payee’s signature, transforms the check into a bearer instrument. Anyone holding the check can cash or deposit it once signed. While convenient for immediate transactions, this carries an inherent security risk. If a blank-endorsed check is lost or stolen, an unauthorized individual could claim the funds.

Specific Endorsement Instructions

Beyond a simple signature, specific instructions can be added to control how a check is handled, enhancing security or facilitating transfer. Restrictive endorsements limit how a check can be used by adding words that direct funds to a specific purpose, such as “For Deposit Only.”

A typical restrictive endorsement involves writing “For Deposit Only” or “For Deposit Only to Account #[Account Number]” above the payee’s signature. This ensures the check can only be deposited into a specified account, preventing it from being cashed or deposited elsewhere. This method provides additional security, particularly when mailing or making a mobile deposit, minimizing risk if intercepted.

Another type, known as a third-party or special endorsement, allows the original payee to transfer the check to another person or entity. Write “Pay to the Order of [New Payee’s Name]” followed by the original payee’s signature. The new payee must then endorse the check to complete the transaction.

This endorsement can be useful for paying a bill directly with a check made out to you. However, some banks may restrict third-party checks due to fraud risks. The new payee should confirm with their bank if they will accept such an endorsement before the original payee signs it over.

Addressing Common Endorsement Issues

If the name on a check does not perfectly match the payee’s legal name, such as a missing middle initial or a slight misspelling, endorse the check with the name as it appears, then immediately below that, sign your correct legal name. This dual endorsement helps the bank reconcile the discrepancy.

For significant name discrepancies, or if the bank expresses concerns, contact the check issuer to request a new check with the correct name. A reissued check ensures a smoother process. Providing supporting identification documents can also assist the bank in verifying identity.

If a mistake occurs during endorsement, such as a misspelled signature or signing in the wrong place, it can often be corrected. Draw a single line through the error, initial the correction, and then re-endorse correctly. Avoid excessive scribbling, using white-out, or making the endorsement illegible, as this may cause the bank to reject the check.

If a check does not have a pre-printed “Endorse Here” line, place the endorsement on the top portion of the back. Signing within the first 1.5 inches from the top edge is appropriate. This area is reserved for endorsements, as the lower portion is often used by banks for processing stamps and other internal markings.