Who Should Sign the Back of a Check?

Endorsing a check is a fundamental step in authorizing its payment or deposit into an account. It involves adding a signature and sometimes other instructions to the back of the check. Proper endorsement ensures funds are handled correctly and prevents processing delays. This process is necessary whether depositing at a bank branch, through an ATM, or using a mobile banking application.

Basic Principles of Endorsement

For a check made out to a single individual, the payee must sign their name on the back. This signature should be placed within the designated endorsement area. The signature should match the name printed on the “Pay to the Order of” line on the front of the check. It is best to endorse a check only when prepared to deposit or cash it, as signing it beforehand creates security risks if lost or stolen.

Endorsing Checks with Multiple Payees

When a check is issued to more than one person, the way it is written determines who must endorse it. If the names on the check are joined by “and,” or a symbol like “&” or “+,” all listed payees must endorse the check. For instance, a check payable to “John AND Jane Doe” requires both John and Jane to sign the back.

Conversely, if the names are separated by “or,” only one of the listed payees is required to endorse the check. A check made out to “John OR Jane Doe” means either John or Jane can sign it for deposit or cashing. This distinction is common for joint accounts or when flexible endorsement is intended.

Endorsing Business or Organization Checks

Checks made payable to a business or organization require a specific endorsement process. An authorized individual must sign the check on behalf of the entity. This involves writing the business name as it appears on the payee line, followed by the signer’s signature and their title, such as “Owner” or “Accountant.”

The authority for an individual to endorse checks on behalf of a business is usually granted through corporate resolutions, partnership agreements, or internal company policies. This authorization ensures only designated personnel can handle the organization’s funds. Without proper endorsement, banks may refuse to process the check, causing delays in accessing funds for the business.

Special Endorsement Scenarios

Restrictive endorsements limit how a check can be used. The most common form is writing “For Deposit Only” above your signature. This ensures the check can only be deposited into the payee’s account, preventing it from being cashed by others. Some banks may also require “For Mobile Deposit Only” for checks submitted via mobile apps.

Signing a check over to another person, known as a third-party endorsement, involves the original payee writing “Pay to the Order of [Third Party’s Name]” followed by their signature. The third party then signs below this endorsement. While this can be a convenient way to transfer funds, banks are not obligated to accept third-party checks due to increased fraud risks. Confirm with both your bank and the third party’s bank if they will accept such an endorsement.

If your name is misspelled on a check, you can still endorse it for deposit. To do this, first sign your name exactly as it appears misspelled on the check, then sign your correct legal name directly below. This dual signature helps the bank reconcile the name with your account records.