Pet & Animal: How to Endorse a Check

Tuesday 2 September 2014

How to Endorse a Check

Sign here please! Before a check can be cashed or deposited, it must be properly endorsed by the receiving party. Knowing how to endorse a check properly is an essential bit of banking knowledge that makes sure your money gets where it's going.

Steps

Just Sign

Flip the check you have received over and find the set of lines evenly spaced grey lines. Whatever you do with this check, only write on these lines—many checks will say "do not write, stamp or sign below this line" to help you comply with this policy.

Sign on one of the gray lines. Put your signature down with a flourish. You can use this space in a variety of ways, but to simply get your check ready to be deposited or cashed, the minimum you need to do is put your signature.
- Make sure the name you sign matches the name the check is made out to. If the front of the check makes the money out to "Bob," don't sign your name "Robert." If your name is misspelled on a check (e.g., Sara Jones, if your real name is Sarah Jones), endorse the check as it is written on the front of the check, then sign the correct spelling below it.

Make sure all the information on the front of the check is filled in correctly. The person who gave you the check needs to have written your name, their signature, the date, and the amount of the check (both as words and as a number). Without all this information, your bank may not be able to process the check.

Take your check to your bank to cash or deposit it. Bring the check you have received to one of the tellers and ask them to either deposit it into one of your accounts or simply exchange it for cash.
- Many banks now have ATMs that allow you to deposit checks through an automated system.

Endorse a Check for Deposit Only

Flip the check over and sign the check on the top endorsement line as normal. You may need to sign with less flourish, to conserve space to write the rest of the information you need.

Write "For Deposit Only" below your signature. This is useful when you want to make your check more secure. This way if you lose the check or need to have someone else deposit it for you, no one but you will be able to use the funds.

On the next line write your bank's name. This will ensure that the check can only be used at that bank.

On the third line write your account number. Make sure you write the number of the account you want the check deposited into.

Endorse a Check for Transfer

Sign your name on the top line. Again, save some space if you can, since you will be writing more.

Write "Pay to the Order of" on the second line. If you have received a check and want to give it to someone else, you can transfer the check so they can deposit it in their own account instead of yours.

Write the name of the person to whom you are transferring the check on the third line. This endorses the check over to whomever you name.

Have the person you are giving the check to put their signature on the last line.

If necessary, go with the other party to the bank. Cautious banks may require your presence before they allow the person you endorsed the check to to deposit it.

Endorse Business Checks

Endorse the check with your business information. Write on the grey lines on the back of the check.

On the first line, write your business name. For example, write Jim's Hardware Store. Use this method when a check is made out not to you personally but to your business.

On the next line, write your name and title. For example, James Smith, Owner.

If you wish, write "For Deposit Only" with your bank and account number on the remaining lines. Business checks can be endorsed for deposit only just like personal checks.

Insurance Checks

Have each party sign the check. This is for checks made payable to an individual, a party, or another financial institution. For example, "Pay to: John Doe, Jane Doe & Wells Fargo Mortgage."

Request that an agent from the financial institution endorse the check. They will most likely write additional information or stamp the check below their signature.

Video

Tips

For multi-party checks, addressed to two or more people with the word(s) "and'", all parties must endorse the check.

For multi-party checks, addressed to two or more people with the word(s) "or", either party may endorse the check.

To save a lot of time and hassle, you can get a stamp with "For Deposit Only" and your account number on it.

Some financial institutions do not require checks to be endorsed before cashing or depositing it. Check with your bank to see if they require this process.

For checks written to a minor, the minor cannot endorse the check. A parent or guardian will need to endorse the check. Write: "Parent/Guardian of [Child's Name], Minor" below the endorsement.

Warnings

Note that writing the account number is not always required when endorsing a check for deposit. It is sufficient to write "For Deposit Only" with your name signed below. Some security experts advise that writing your bank account number on the back of a check is a security risk in that it exposes your account number to third parties who may handle the check. This is probably not a big deal when you consider every checking account number is at the bottom of each check written from that account usually with their name and address and exposed to check handlers.

Insurance checks are frequently returned for improper endorsement. Endorse it 'exactly' as the name(s) are written on the front of the check.

To be safe, never sign your signature without the words "For Deposit Only" on the back of a check unless you are physically at the bank. These words prevent someone from endorsing their name below yours in order to be able to wrongfully gain control of your check and the money it represents.