Where to Endorse a Check and How to Do It
Unlock the proper techniques for endorsing checks. Ensure your deposits and cashings are handled correctly across all common situations.
Check endorsement is the legal authorization for transferring funds from the check writer to the payee. This process ensures financial institutions can properly process checks for deposit or cashing. By endorsing a check, the payee confirms their identity as the rightful recipient and directs how funds should be handled. This procedure helps protect both the payee and the financial system.
Understanding Basic Endorsement
Endorsing a check involves signing the back, typically within a designated area often marked “Endorse Here.” This area is usually on the top portion of the back, with lines for the signature. The basic requirement is the payee’s legible signature, matching the name on the “Pay to the Order of” line on the front.
If there are minor discrepancies or misspellings in the payee’s name, endorse the check by signing it once exactly as written, then again with the correct spelling directly below. Some banks may request an account number below the signature for direct deposit. Sign the check only when ready to deposit or cash it, as a signed check can be treated like cash if lost or stolen.
Different Endorsement Types
Beyond a simple signature, checks can be endorsed in several ways, each with different implications for security and transferability. A blank endorsement is the most common, involving only the payee’s signature on the back. While convenient, this makes the check payable to anyone who possesses it, similar to cash, and carries the highest security risk if lost or stolen before deposit.
A restrictive endorsement enhances security by limiting how the check can be used. This is done by writing “For Deposit Only” and often including the account number below the signature. This ensures funds can only be deposited into the specified account, preventing anyone else from cashing it. This method is useful when mailing a check or using an ATM.
A special endorsement, also known as a full endorsement, allows the payee to transfer the check to another party. The original payee writes “Pay to the Order of [New Payee’s Name]” followed by their signature. The check then becomes payable to the new party, who must endorse it before deposit or cashing. This endorsement type is less common.
Addressing Specific Endorsement Scenarios
Certain situations require particular attention when endorsing a check. For checks made out to multiple payees, the conjunction between names determines who must endorse it. If names are joined by “AND” (e.g., “John AND Jane Doe”), all listed payees must sign. If names are joined by “OR” (e.g., “John OR Jane Doe”), any one payee can endorse and deposit or cash the check.
When a check is issued to a business, an authorized representative must endorse it. This involves writing 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 (e.g., “ABC Corp, By: [Signature], [Title]”). This ensures proper attribution to the business entity.
For mobile deposits, many banks require an additional restrictive endorsement to prevent duplicate deposits. This means writing “For Mobile Deposit Only” or “For Mobile Deposit at [Bank Name]” below the signature, in addition to signing the check. This helps financial institutions identify mobile deposits and prevents physical re-cashing. If a check is damaged in the endorsement area, it might not be accepted; contact the issuer or bank for guidance.