Where Should You Endorse a Check?

Endorsing a check is necessary for depositing or cashing it, authorizing the financial institution to process funds and validating proper money transfer. It also serves as a security measure, confirming you are the intended recipient.

The Standard Endorsement Area

Most checks feature a designated endorsement area on the back, typically at the top. This space often includes pre-printed lines or phrases like “ENDORSE HERE.” This area is reserved for the payee’s signature and any processing instructions.

For a standard endorsement, sign your name within this box. Your signature should match the name printed on the “Pay to the Order of” line on the front of the check. Use permanent ink (blue or black) and sign clearly. Staying within the specified area ensures efficient processing.

Types of Endorsements and Their Placement

Beyond a simple signature, specific instructions can be added for security or specific transactions. A restrictive endorsement limits how a check can be used, typically for depositing funds only. To apply this, write “For Deposit Only” above your signature.

Adding your account number after “For Deposit Only” provides extra security, ensuring funds are credited to a specific account. This endorsement is useful when mailing or using mobile deposit, preventing it from being cashed if lost or stolen. For mobile deposits, some banks may require “For Mobile Deposit Only” within the endorsement area.

A special or third-party endorsement allows you to transfer the check’s ownership to another person. To do this, write “Pay to the Order of [Recipient’s Name]” directly above your signature. The new recipient must then endorse the check below your signature to deposit or cash it. Not all financial institutions accept third-party checks, and some may require both parties to be present.

Endorsing Checks with Specific Payee Situations

Checks made out to a business or organization require endorsement by an authorized representative. The representative should write the business name exactly as it appears on the payee line, followed by their signature and title (e.g., “Company Name, By: [Signature], Title”). This endorsement should be placed within the standard endorsement area.

When a check is made out to multiple payees, the conjunction used dictates who must endorse it. If the check states “and” between the names (e.g., “John Doe AND Jane Smith”), all listed payees must endorse the check for it to be processed. Each person should sign one after another.

Conversely, if the check uses “or” (e.g., “John Doe OR Jane Smith”), either listed payee can endorse and process it independently. For checks issued to deceased individuals, the executor or administrator of the estate typically endorses the check. This endorsement often includes phrasing like “Estate of [Deceased Name], By: [Executor’s Signature], Executor.” Such checks usually belong to the estate and may require probate court appointment before deposit.