A check holder (or payee) who wishes to make a blank endorsement can just sign the endorsement area of the check, indicating that they accept the transfer of the funds. But even in these modern times, many people and businesses use paper checks. And when you’re paid by check, you need to endorse it before you deposit it.

• An example might be when your insurance company (remitter) issues a check to you (payee) and you then need to endorse it to an auto body shop (3rd party) for work done on your car.
• Because of the added level of diligence placed on bank staff to validate and verify the endorsements, bank tellers have a fair degree of latitude for rejecting such checks.
• A conditional endorsement is a type of endorsement on a check that imposes certain conditions or requirements on the negotiation or payment of the check.
• Simply sign in the usual spot you would on the back and deposit it as you normally would.
• Kevin Payne is a personal finance and travel writer who covers credit cards, banking, and other personal finance topics.

If you aren’t going to cash checks yourself, or can’t do it in person, you should make sure these specifications are clearly listed. 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. Consult with your bank about its processing policy if you receive a check like this. And you can make life easier for them by writing “John OR Jane Smith” if you’re making out a check for a couple. The first step is to write the business’s name on the back of the check.

Types of Check Endorsements

A check endorsement is for security purposes to verify you are the intended recipient of the check. To endorse a check, sign your name on the back and include any additional details required to process the check efficiently. A signature is usually all that’s needed, but additional steps can help you control how banks handle your payment and protect you from fraud. Seeking professional advice can also help in making an informed decision.

If you’re signing the check over to someone else, you need to write “Pay to the Order of [recipient name]” below your signature. It’s best to do this with a black or blue pen, and include your job title to demonstrate you’re authorized to make this change. Endorsements act as additional security features, which verify that the person writing the check has authorized the transaction, and the person receiving the funds is the legitimate payee.

• If you want to tie the validity of a check to a certain condition, you’d write out the condition after stating who the check is payable to.
• You can save yourself the hassle of having to write a new check, by taking the time to write information clearly the first time.
• Statements, whether sent via mail or email, typically include instructions on making a payment.
• Understanding the proper way to endorse a check can mitigate these risks.

The blank endorsement indicates that whoever is in possession of the endorsed check is considered to be the owner. To avoid such a risk, businesses and individuals should use restrictive endorsements on the checks they receive. To do this, log into your bank account via the financial institution’s website or mobile app. Typically, you can find instructions for ordering checks under the customer service or account services section. Endorsing a check right before its negotiation minimizes the risk of unauthorized access in case the check is lost or stolen. Accuracy in endorsement, particularly in restrictive or special endorsements, ensures the check is processed without issues.

Understanding the FDIC insurance limit: safeguarding your deposits

Many bank and credit union ATMs allow customers to deposit checks. Depending on the specific ATM, there may be an envelope you need to use for your deposit. A mobile check deposit without an endorsement is likely to be rejected, even if initially accepted from your phone. When you receive a check from someone else, you need to endorse the check before you can deposit it into your account or cash it.

Multiple Payees

You must include your name and address, daytime phone number, Social Security number or EIN, the tax year and the related tax form or notice number. Refer to the tax form or contact your tax professional or the IRS for the correct address to send the check. Hold onto the check until you know it has cleared and the funds are deposited into your bank account.

Is it illegal to write a post-dated check?

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. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site.

That’s the best way to prevent someone from fraudulently depositing a check made out to you. If you do endorse it early, be sure to add a restriction such as “for deposit only” under your signature. You can try to create your business plan with planbuildr sign a check over to somebody else, effectively paying that person with the check you received. To sign a check over, write “Pay to the order of…” below your signature, and name the new payee.

Before you start writing and using paper checks, you need to be able to identify the sections of a check. There are three important numbers whose locations are similar on every printed check. The bank then has the right to act on your behalf and negotiate the check. Endorsing a check is fairly simple, but there are a few things to know so that you do it correctly and your money is protected. If you don’t include a phrase to this effect, a bank can reject the endorsement attempt.

It is the simplest form of endorsement but also the riskiest, as anyone who possesses the check can cash or deposit it. It’s a crucial step in the process of cashing or depositing a check, serving as a legal verification of the transfer of ownership of the check from one party to another. 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.