What to Write to Endorse a Check to Someone Else

Endorsing a check to another person, also known as a third-party endorsement, involves transferring ownership from the original payee to a new recipient. This allows the original payee to sign over their right to the funds. While convenient for transferring money without cashing or depositing the check first, it requires adherence to specific guidelines for validity and acceptance by financial institutions.

Standard Endorsement for Third-Party Transfer

To endorse a check for a third-party transfer, the original payee must write specific wording on the back of the check within the designated endorsement area. This area is typically found on the back of the check, often marked with a line or box and text like “Endorse Here”. The required phrase is “Pay to the Order of [New Payee’s Full Name]”.

Below this phrase, the original payee must sign their name exactly as it appears on the front of the check. The signature must be legible and match the name printed on the check to avoid processing issues. The entire endorsement, including the phrase and signature, should be contained within the endorsement area and not extend below any “Do not write, stamp, or sign below this line” instruction. This endorsement is essential for the check to be recognized as legally transferred.

Key Considerations for a Successful Transfer

For a third-party endorsed check to be successfully processed, several factors must be considered by both the original payee and the new recipient. The original payee’s signature on the back of the check must exactly match the name on the check’s “Pay to the Order of” line. Any discrepancy, such as a misspelled name on the check, might require the original payee to endorse with the incorrect spelling first, then with their correct legal name.

Not all financial institutions are obligated to accept third-party checks due to the increased risk of fraud. Some banks may have specific policies or restrictions, especially for certain types of checks like government or certified checks. Before endorsing, the new recipient should contact their bank to confirm their policy on accepting such checks. Banks implement these rules to prevent fraudulent activities and ensure compliance with processing regulations, which can sometimes lead to delays or refusal if policies are not met.

What the Recipient Needs to Do

After receiving a properly endorsed check, the new payee must also endorse it before attempting to deposit or cash the funds. The recipient should sign their name below the original payee’s endorsement on the back of the check. This second endorsement signifies the recipient’s acceptance of the transferred funds.

Third-party checks often require in-person transactions at a bank branch. The new payee should present valid government-issued photo identification to the teller for verification. While some banks may allow mobile deposits for third-party checks, many do not, or they may require additional steps or hold periods. Attempting to deposit such a check via an ATM or mobile app without confirming the bank’s specific policy could result in the check being rejected or funds being held for an extended period.