Most checks have a dedicated space on the back for an endorsement, typically marked with lines, shading or the phrase “Endorse here.” This space is where you sign and make any additional notes. Discover what FDIC insurance is, its limits, and the types of accounts it covers. Learn if your money is safe in banks, credit unions, and with CDs.

You’ll have to check with your bank to determine what their requirements are for writing or cashing checks. If you are endorsing a check made out to your small business is only slightly different from endorsing a check made payable to you. When a check is made payable to your business, the back of the check should be endorsed with the name of your business. Other information to include when endorsing a business check for mobile deposit includes your name, position and any further restrictions. For security purposes, it is important to wait to endorse the check until you are ready to complete the deposit.

Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content. It’s advisable to verify the authenticity of the payee’s identity by comparing identification documents or conducting online searches if necessary.

If the check doesn’t specify “and” or “or,” but just lists the names, then follow the same instructions you would if the check were written with the word “and.” This will ensure that no one can try and deposit the check again. It also serves as a reminder to you that this check has already been taken care of. In general, whoever’s name is written on the “Pay to the Order of” line is the one who needs to endorse the check. All of these endorsement restrictions go in the same “ENDORSE CHECK HERE” box on the back of the check. As the check receiver, you shouldn’t write anywhere else on the check.

Who needs to endorse a check?

Follow the tips below to ensure your checks are accounted for and end up where they need to go. Whether sending payment for services rendered, receiving a paycheck from your employer or getting a birthday check in a card, checks are an integral part of daily banking life. Technology has changed the way the world banks, average collection period but some traditional banking methods and instruments remain. As a financial security rule, only endorse the check when you’re ready to deposit it, so there’s less room for it to get lost and end up in the wrong hands. Generally, endorsing a check is quite simple, and it always requires you to sign in a designated area.

When endorsing a check that is written to multiple people, it is important to look at the pay-to line on the front of the check to look for the words “and” or “or”. Just like when endorsing a check written to one person, it is important that when endorsing the back of the check the signature matches the spelling on the front of the check on the pay-to line. Your bank will probably tell you to deposit the funds into your account first then send the funds differently if you try to endorse a check this way.

When you hand over a check to the bank, you are authorizing the check to be turned into cash that is either placed in your hand or directly into your bank account. The step of endorsing a check with your signature, whether at the bank or using a remote device, is a security measure. It helps to verify the proper recipient and allows the bank to complete the transaction. This is often the case with checks that are given as wedding gifts. Some banks accept checks without endorsements, but this is rare.

Record Your Transactions

For example, the check might be made payable to a retirement account custodian for a rollover transaction that’s for the benefit of you. The custodian will endorse the check, and you generally would not need to sign it. If you run a business and accept checks, endorsing is slightly different. The check is payable to the business—not to you, the individual who owns the business—so you need to sign on behalf of the business. Anybody else who endorses these checks needs to be authorized to handle funds for the company. Be aware that some banks do not allow this type of endorsement because the technique is sometimes used for theft and fraud.

What Is a Third-Party Endorsement?

The signature essentially turns the instrument into a bearer security. That is, it is not registered to any individual but is payable to the person who possesses it. When it comes to the duty to accept an endorsement, banks and other financial institutions (such as credit unions) have a fair degree of latitude. To ensure that the accepting financial institution doesn’t reject or dishonor your check, make sure you endorse it appropriately before you date and sign it.

I just knew it was extremely convenient for us to get the money out of the bank that way. Before you endorse it, you must ensure that the original check has the correct date, amount, and payee name. Also, confirm that the person has filled out the signature line. When you sign over a check to a third person, you need to realize that the check funds will no longer be going to you but to the person you name in the endorsement. For this reason, you need to be clear about what’s happening and only use a third-party endorsement with people you trust.

Types of Check Endorsements FAQs

Third-party check providers also are an option, either through a partnership with your bank or by ordering directly. Following these tips can help you avoid the headaches and financial troubles of check fraud. Writing a check isn’t tricky, but there are things to keep in mind to ensure the check will be valid. Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.

Next time you take an old school check in your hand, review its purpose and determine the proper endorsement. Your kids might ask, “where do I sign a check,” and you can enlighten them using this information. Knowing how to endorse a check is part of personal finance management.

Can I endorse a stimulus check?

The moment you sign the back of the check, you give your bank the green light to collect and process the payment. You can think of it like signing for parcels and packages that you receive, except in this case, it’s money you’re collecting. If you don’t endorse a check, the bank won’t be able to process it.

Everything from making sure that the check is filled out correctly, to making sure it isn’t modified after your endorsement. The last thing you want is to go all the way to the bank, only to find out that the check is invalid. NorthOne is proudly made for small businesses, startups, and freelancers.

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