Where to Sign a Check and How to Endorse It
Learn the essential steps for correctly signing and endorsing checks to ensure valid and secure financial transactions.
A check serves as a common financial instrument, authorizing a bank to pay a specific amount of money from one account to another. Correctly signing and endorsing a check is fundamental for accurate processing and secure transfer of funds, preventing potential issues.
Endorsing for Standard Transactions
When depositing or cashing a check, the signature must always be placed on the back. A designated endorsement area is typically found at the top portion of the check’s back, often marked with a line or a box, and is specifically for the payee’s signature.
Sign your name exactly as it appears on the “Pay to the Order of” line on the front of the check. If your name is misspelled, sign it with the incorrect spelling first, then sign it correctly underneath. Ensure your signature is clear and legible, using blue or black ink to avoid processing difficulties.
Endorsing for Specific Purposes
Beyond a simple signature, checks can be endorsed with additional instructions for specific purposes. A restrictive endorsement, such as “For Deposit Only,” ensures the check can only be deposited into an account and cannot be cashed. This adds a layer of security, especially if the check is mailed. To apply this, write “For Deposit Only” or “For Deposit Only to Account # [Your Account Number]” above or below your signature within the endorsement area.
A special endorsement allows you to transfer ownership of the check to another person or entity. This is done by writing “Pay to the Order of [Recipient’s Name]” above your signature. The original payee signs first, and then the new recipient will sign below the original endorsement to cash or deposit the check.
Proper Placement and Information
Many checks have a specific box or line that states “Endorse Here” and instructs not to write below a certain line. For checks without a pre-printed endorsement line, still sign in the top back portion.
When a check is made out to multiple payees, the conjunction used between their names dictates who must sign. If “and” is used (e.g., “John AND Jane Doe”), both individuals must endorse the check. If “or” is used (e.g., “John OR Jane Doe”), either person can endorse it. Avoid writing or stamping over the Magnetic Ink Character Recognition (MICR) line at the very bottom of the check. This line contains crucial banking information, and obscuring it can interfere with automated processing, potentially causing delays or rejections.