Endorse a Check

When you endorse a check made out to you, you can deposit or cash it to obtain the amount of money indicated on the check. This article will show you the different ways of endorsing a check.

10 Second Summary

1. Ensure that the information is correct.
2. Find the grey lines on the back of your check.
3. Sign your name on one of the lines.
4. Take your check to your bank to cash or deposit it.

Steps

Endorsing a Check with a Signature

  1. Make sure that the check information is correct. 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.
    • If the person who wrote your check made a mistake, go to the person and request a new check. Some banks will accept a check that has been corrected with initials, but this can also look suspicious. Getting a new, correct check will make it less likely that you will encounter any problems at the bank.
    • If someone wrote a check to you with incorrect information, then the old check will have to be voided. It is also a good idea to shred any checks that you cannot use.
  2. Find the grey lines on the back of your check. Flip over the check and look for the grey lines located on the upper part of the check. Sign your name on one of the lines as it is spelled on the face of the check.[1]
    • Most checks say "do not write, stamp, or sign below this line" beneath the endorsement area, because the bank needs this space to document their completion of the check.
  3. Sign your name on one of the grey lines. To deposit or cash your check, all you need to do is sign on one of the grey lines. Nothing else is required to endorse a check.[2]
    • If more than one person is listed on the check and their names are connected with and, then both people have to sign the check in order to endorse it. If the names are separated by or, then just one person has to sign the check.[1]
    • Make sure your endorsement is within the endorsement area to prevent confusion or error at the bank.
    • Make sure the name you sign matches the name on the check. For example, if the front of the check says "Bob Johnson," don't sign your name "Robert Johnson." Likewise, if your name is misspelled on a check (e.g., Sara Jones, if your real name is Sarah Jones), then sign the check as it is written on the front of the check. You can then write the correct spelling for your name below it.
  4. Take your check to your bank to cash or deposit it. Ask the bank teller to deposit the check into one of your accounts, or simply exchange it for cash. Keep in mind that an unrestricted endorsement (a signature alone) means that anyone who has the check can cash it. Because of this, you should protect a signed check like you would cash. Consider waiting until you get to the bank where you will deposit your check to sign it.[2]
    • If you don't have a bank account, you can cash your check at the bank of the person who issued you the check. The bank's name should be written on the face of the check. Note that the issuing bank may or may not charge a fee for cashing your check.[3]

Endorsing a Check for Deposit Only

  1. Write "For Deposit Only" on the top endorsement line. This type of endorsement restricts the way the check can be used, specifying that only the person listed on the face of the check can cash or deposit it.[4] By using this restrictive endorsement, you ensure that 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.
    • This type of endorsement is most effective if you are mailing your check for deposit, or are giving it to someone else to deposit on your behalf.
  2. Sign the check on the next line. Make sure that you conserve enough space to write the rest of the information you need. This signals that you wish to exercise your rights to the check writer's promise to pay. Your signature is required no matter what type of endorsement you exercise.
    • Note that if the signature is above "For Deposit Only," the check technically becomes a bearer instrument and could be modified by someone else.
  3. Include your bank's name and your account number. On the next line down, you can write your bank’s name and your bank account number. This will ensure that the check can only be deposited at the bank you specify, and to the account you have chosen. Make sure you write the number of the account you want the check deposited into.
    • This is a restrictive endorsement because it specifies the account that you wish the check to be deposited to. This kind of endorsement is useful when you have someone else deposit your check, such as an employee. Anyone who has access to your check will only be able to deposit the check into your account.
    • While it may be a good idea to protect your check with a restrictive endorsement in some cases, you should also protect your bank account information. Your bank account number is important, and you should protect a check that you have endorsed with your account number to avoid identity theft or fraud. Place the check in a sealed security envelope and only allow people you trust to make deposits for you.

Endorsing a Check for Transfer to Another Person

  1. Write "Pay to the Order of" on the top line. After this, write the name of the person you are transferring the check to on the next line. This step transfers the rights to the check's funds from you to the person you have chosen.[5]
    • This step is like writing a brand new check to the person, but he or she will have to sign the check as well.
  2. Sign your name. You will need to sign your name underneath the printed name of the person to whom you are transferring the check. The person will then have to sign below your signature as well, so try to leave some room above the last grey line.
  3. Ask the person to sign the check. Once you have signed your name, the person who you wish to transfer the funds to must also sign the check. He or she should sign the check right under your signature.
    • After signing the check, the person you have transferred the check to may deposit or cash the check.
  4. Go with the person to the bank if necessary. The authorized party should be able to deposit the check, but some cautious banks may require your presence. This may be the case for a large amount or if the person you are transferring the check to is from outside the country.[5]
    • You can try to let the person deposit the check alone first. If the person who you assign the check to can't cash or deposit the check, then you will have to go to the bank with him or her.

Endorsing a Business Check

  1. Endorse the check with your business information. Write on the grey lines in the endorsement area on the back of the check. On the first line, write the name of your business.
    • For example, write "Jim's Hardware Store" on the first line of the check.
    • Use this method when a check is made out to your business rather than just to you.
  2. Add any restrictive endorsements. If you want to add any restrictions, then you can do this before signing the check. Just like personal checks, you can add a restrictive endorsement to your business check, indicating you only want it deposited at the business' bank in a specific account, or you can transfer the rights to the check from the business to another individual or business.
    • For example, writing "For Deposit Only" with your bank and account number ensures the check can only be deposited in one of your business' accounts.
    • If you want to transfer the check, you can write "Pay to the Order of" and the name of another person or business. Once you have written the transfer endorsement, the transferee must endorse the check in order to cash or deposit it.
  3. Write your name and title. If you have not added a restriction, such as "For Deposit Only," this creates an unrestricted endorsement on your business check, meaning that anyone who has access to the check can cash or deposit the check.
    • For example, you can write "James Smith, Owner" beneath your business name.
    • For your endorsement of a business check to be valid, you must be authorized by the business to do so. Your business account will include the names of the authorized agents, who can make payments and deposits on behalf of the business.
    • Remember not to add the endorsement until you are ready to cash the check, to protect your check from theft. Once you have signed the check with your title and business name, anyone who has access to the check can cash it as the holder.



Tips

  • Many banks now have ATMs that allow you to deposit checks through an automated system, or even allow you to deposit a check via a mobile app by taking photos of the front and back of the check. Either of these methods requires at least a signature endorsement.
  • Some people will write a later date on the check, which is called "post-dating." Banks are not required to wait until the date listed on a check to cash it. However, if your check is post-dated and you cash it, then you may cause the person who wrote the check to overdraw his or her account.

Related Articles

Sources and Citations

  1. ↑ 1.0 1.1 http://myfinancialwingman.com/2011/05/banking-basics-101-check-endorsements/
  2. ↑ 2.0 2.1 https://www.fultonbank.com/resources/pdf/webed/overdraft/endorseacheck.pdf
  3. ↑ http://money.usnews.com/money/blogs/my-money/2015/02/20/how-to-cash-a-check-without-a-bank-account
  4. ↑ http://www.consumerfinance.gov/askcfpb/947/what-does-it-mean-check-be-endorsed-deposit-only.html
  5. ↑ 5.0 5.1 http://www.joshstaiger.org/archives/2006/02/how_to_sign_ove.html
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