How To Endorse a Check
When someone writes you a check, you can deposit it in your account or cash it at the bank to get the money. Before you hand the check over to the bank, you’ll need to endorse it. That means you sign the back of the check to indicate you have permission to receive the funds. Keep reading to learn how to endorse a check properly.
Quick Take: Endorsing a Check Tips
Before endorsing a check, it’s a good idea to be ready to deposit it straight away. Once your signature is in the endorsement area, the check can more easily get cashed. Here are some key factors to consider when endorsing a check:
The check’s endorsement area is generally found on the back of the check where there is a line for your signature.
Endorsing a check is a security measure for both the recipient of the check and the bank or financial institution that cashes it, as it verifies the right person is getting the funds.
How banks determine what checks are accepted and other endorsement requirements will vary from bank to bank, whether it’s in person or mobile deposit.
You still have to endorse a check for mobile deposit.
Banks typically require you to take a picture of the front of the check to verify the recipient, date and account information. You’ll then have to take a picture of the back of the check to verify the endorsement section has been signed.
How To Endorse a Check: Step-by-Step Guide
The correct way to endorse a check varies slightly, depending on how the check is written and what you want to do with it. Here are the general steps to endorse most checks:
Verify the information on the check. Before you endorse the check, make sure it’s written for the amount you expect, and note the payee. This is especially important if the check is written to more than one person. For example, a check written to “Jack and Jill” must be endorsed by both Jack and Jill. If the check is written to “Jack or Jill,” only one of them has to sign it.
Turn the check over and locate the endorsement box. You should see a section at the top of the check with a place for you to sign or stamp the check. Look for the words, “Endorse Here.”
Sign your name on the top line or in the box. Avoid writing outside the area or below the line that says “Do not sign, write, stamp below this line.”
Restrictive Endorsement
Some people choose to endorse checks for deposit only, which restricts the ability to cash them.
This method is more secure than a blank endorsement because it limits what can be done with the check — the only option is to deposit it in the account.
If you want to take this route, add “For deposit only” and include your account number.
Endorsing a basic check is a fairly straightforward process. Here’s a look at how to endorse a check that’s not written to you.
How To Endorse a Check to Someone Else
After someone writes you a check, you can sign the check over to someone else who can cash or deposit it if you don’t have a bank account. That’s called a special endorsement or a third-party check. To endorse a check this way, follow the instructions above for endorsing a check, here are a few key takeaways:
Typically, banks require that you include the statement, “Pay to the order of [person’s name]” in the endorsement box.
Keep in mind: banks take a risk when they cash this kind of check because anyone can find a signed check and fill in the endorsement information. For this reason, not all credit unions and banks accept checks with a special endorsement.
If your bank or credit union does accept a third-party check, you may need to visit the bank in person to deposit or cash the check or wait a few days before the funds are available in your checking account.
How To Endorse a Check Written To Your Business
If you receive a check written to your business, you should endorse the back of the check with the name of your business and also your name and position.
You may use a stamp with the company’s name and other identifying information. The stamp tends to be more convenient to use when you have to endorse a stack of checks.
How To Endorse an FBO Check
An FBO check is a check that’s made payable to a business or person for the benefit of someone else. Here are some situations where an FBO check would apply:
A check to a minor and their parent, such as “John Doe FBO Jimmy Doe.”
A check to the caretaker of an elderly person, which could be an individual or a facility, and the elderly person, such as “Sunshine Nursing Home FBO Jane Doe.”
To endorse an FBO check, both parties sign the check, starting with the payee. In the first example above, John Doe would endorse the check followed by Jimmy Doe. In the second example, Sunshine Nursing Home would endorse the check followed by Jane Doe.
How To Endorse a Check for Mobile Deposit
Your bank might have additional requirements if you’re making a mobile deposit. You might need to write “For mobile deposit” instead of “For deposit” and check a box that indicates it’s a mobile deposit.
Ask your bank or search its website for specific instructions that apply to mobile deposits, if you’re not sure.
Final Take To GO
Check deposits are less common today, thanks to the use of electronic payments and money transfer apps. If you have your paycheck deposited directly into your account or pay for your share of dinner through a service like Zelle or Cash App, you may not see a physical check often. Still, it’s helpful to know how to endorse a check so you can avoid a returned check and receive your money as quickly as possible when you do have a paper check in hand.
Caitlyn Moorhead, Cynthia Measom and Allison Hache contributed to the reporting for this article.
This article originally appeared on GOBankingRates.com: How To Endorse a Check
