When someone writes you a check, you usually need to endorse it before cashing or depositing it. Sign your name on the back of a check and give any additional information needed to process the check quickly. Although a signature is usually sufficient, taking extra steps can help you manage how banks handle your money and protect you from fraud.
What Is The Best Way To Endorse
Names That Go Together
The signature on the back of the check must match the payee's name on the front of the check to be properly endorsed. If your name was misspelled or typed improperly, sign it first with the wrong version, then sign in again with the correct version.Where Should You Put Your Support?
On the back of most checks, there is a 1.5-inch section for you to write in. "Do not write, stamp, or sign below this line," says the endorsement area, which is designated with lines and directions. (See the example image above for the "back of the check.") Keep your full signature, as well as any other bank instructions, in that place.Endorsement (blank)
The most straightforward (but also the riskiest) method of endorsing is to sign the check without placing any conditions. Sign your name in the endorsement space to employ that method, often known as a blank endorsement. (In the example, see "Blank endorsement.") Do this only if you intend to deposit or cash the check right after you sign it. For example, if you're at a bank lobby or making a remote deposit at home, a blank endorsement may make sense.Mailing, ATM deposits, and other services are available
Use a different technique if you intend to mail the check to your bank, deposit it at an ATM, or carry it around for an extended period of time. Leave the check unsigned until you're ready to deposit it, or make an endorsement restriction. Blank endorsements are problematic since the endorsed check could be stolen and cashed or deposited into a different account by someone else.Get Money Into Your Account With A Restrictive Endorsement
A restriction endorsement aids with the deposit of a cheque into a certain bank account. (See the example for "restrictive endorsement.") With your endorsement, include your account number and and instructions that the money can only be deposited into your account if you use this method. As part of your endorsement, write "For deposit solely to account #####" (using your account number). Thieves will have to alter the endorsement if the check is lost or stolen, making it more difficult for them to receive your money. Instead of writing your account number, add "For deposit only to account of the payee," which requires thieves to have access to an account in your name. If you specify an account number, you may or may not be required to sign as well, depending on the circumstances.It Should Be Signed Over to Someone Else
You might try signing a check over to someone else and paying them with the check you received. However, this isn't the best way to pay someone. Put "Pay to the order of..." below your signature to change the payee on a check. Warning: Because this practice is sometimes exploited for theft and fraud, several institutions do not allow this form of endorsement. Before you try, double-check with all of the banks involved, including the checkwriter's bank and the ultimate bank where the check will be deposited.There is no endorsement.
You are not required to endorse all checks. Some banks will let you deposit checks without requiring a signature, account number, or any other information on the back. By omitting the endorsement, you can keep your personal information private. After checks are paid, checkwriters can often examine photos of processed checks online, including the endorsement area. Nobody can see your signature or account number if there is no endorsement unless your bank inserts the account number during processing. Tip: You may still enter "for deposit only" in the endorsement box for additional security. Although technically not an endorsement, most banks and credit unions would be wary of cashing that cheque for anyone.Who Signs To Endorse?
It's not always clear who should sign the check. The person who receives the check must once again endorse it. The individual who originally wrote it had already signed on the front of the cheque. (For instance, see the front and back of a check.)Checks Made Out to a Group of People
How do you endorse a cheque that is payable to both you and someone else? Is it necessary for everyone to sign, or simply one of you? It is dependent on the check's format: Everyone must sign if the word "and" occurs between names.Checks to Your Company
Endorsing is a little different if you own a business and take checks. Because the check is payable to the business rather than you, the business owner, you must sign on behalf of the business. Anyone else who signs these checks must be authorized to handle the company's funds.Checks from the FBO
The first payee must endorse a cheque made payable to one party for the benefit of another (FBO). The check could be made payable to the custodian of a retirement account for a rollover transaction. The check will be handled by the custodian, and you will not be required to endorse it.Why Is It Necessary For You To Endorse Checks?
When you receive a check, it is made payable to you. You're the only one who has the legal authority to withdraw funds from the checkwriter's account. However, handing over that check to your bank and letting them handle it is the simplest way to cash it (or deposit money you can later spend from your checking account). You authorize the bank to collect payment by endorsing a check. The bank then has the authority to negotiate the check on your behalf. Users can deposit a check without having to re-endorse it. It may be a possibility if the check is small enough, you deposit it into an account with the same name as the payee, and it isn't from an insurance company or other institution that requires endorsement. Unendorsed checks are routinely accepted by banks and credit unions, with the assumption that no difficulties will develop. If getting paid quickly is critical, it's best to properly and thoroughly endorse checks. Even if your bank allows you to deposit a check, the check may bounce after many weeks, causing the bank to deduct monies from your account until the matter is resolved. Prior to signing a check, wait as long as possible, regardless of the method you use to endorse checks. It's preferable if you sign while you're at the bank or making a mobile deposit. If you endorse checks and they go missing, it's much easier for someone else to cash the check or attempt to deposit it into their account.Differences Between Mobile Deposit Endorsements
Follow your bank's app instructions if you're depositing checks with your phone. The bank may request that you mention that you're making a mobile deposit on your endorsement. You can get away with disobeying those requirements in some situations, but it's best to comply if the deposit is significant. Tip: Now that you understand what it means to endorse, figure out how to deposit checks the most efficiently. You can often avoid the teller line by using ATMs and most mobile devices. You might be able to do away with paper checks entirely if you get paid electronically.Most Commonly Asked Questions (FAQs)
When is the optimum moment to sign a check endorsement?
In most cases, you should hold off on endorsing a check immediately before depositing it. That's the most effective approach to prevent someone from depositing a check made out to you fraudulently. If you do sign it early, make sure to put a restriction under your signature, such as "for deposit only."Where do I sign a check that doesn't have any lines on the back?
It's possible that you'll get a check with no endorsement line or box on the back. The check is not void as a result of this. Sign in to the appropriate location on the back and deposit it as usual.