If the names are connected by the word “and,” as in Jim and Marsha Smith, banks usually require both parties to sign the back of the check before cashing it. If you are going to deposit or cash your check in person, wait to endorse the check until you’re at the bank. If you endorse the check in advance, someone else could take the funds if the check falls into their hands. This is known as a blank endorsement, but other types of endorsements may change the steps you need to take when endorsing a check.

1. Emma Tomsich is a student at Marquette University studying Corporate Communications, Marketing and Public Relations.
2. It is also important to match the signature on the endorsement with the name written on the front of the check, and to write clearly and legibly when endorsing.
3. This is important to keep in mind because if you lose the check after you endorse it, someone can steal the check and alter the endorsement.
4. Endorsing may require more steps depending on the type of check and the place of deposit.
5. Commercial banks make money by providing loans and earning interest income from those loans.

If the check is compromised, the endorser is not responsible for paying the payee. To make a qualified endorsement, write “without recourse” on the back of the check and then sign your name on the line below. Now, we’ll review the most common types of https://www.bookkeeping-reviews.com/tax-evasion-tax-avoidance/ check endorsements, their key characteristics and how they work. However, if done wrong, endorsements can make using checks much more difficult. Learning how to write a check and how to endorse a check are critical steps toward financial literacy.

Your Complete Guide for How to Endorse a Check

If you need to endorse checks to cash for your business or deposit into your business’s bank account, the process is slightly different than it is for personal checks. Instead of depositing or cashing the check yourself, you can sign a check over to another person. In this situation, you will use a full endorsement, also known as a special endorsement or a third-party check endorsement. In addition to signing the back of the check, you will also write “pay to the order of” and the first and last name of the person you’re transferring the check to. Essentially, you’re transferring the check’s funds to someone who is neither the person that wrote the check (the first party) nor the original payee (the second party). Whether you want to deposit a check into your checking account or savings account or you want to cash a check, you can do so in person at the bank.

Ideally, you should wait to endorse a check until just before you deposit it. 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 sign a check over to somebody else, effectively paying that person with the check you received.

The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. Any opinions, analyses, reviews or recommendations expressed here are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. This editorial content is not provided by any financial institution.

Understanding blank endorsement

If you want a basic checking account with no monthly maintenance fee, or an interest-earning checking account, we've got the options that are right for you. Our team here at Remitly has put together this guide to help xero legal accounting software review you learn how to endorse a check. Once you confirm that the check is valid, double check for errors. Make sure that all the information on the front of the check is correct and that there are no spelling errors.

Even then, the bank may charge a fee and even a penalty for the early withdrawal. If the instrument is lost or stolen, it can be cashed or deposited by the finder. 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 (third party) for work done on your car. If there is a discrepancy in the written-out and numerical amounts, or if something is illegible, the check may not be honored.

Types of Endorsements

A special endorsement, like a standard bank check, includes the name of the payee as well as a signature. Depending on specific guidelines enforced by each financial institution, this endorsement phrase may be included above your signature or below your signature. This endorsement prevents anyone else, other than the intended payees, from negotiating (or cashing) the check.

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. The steps that you follow to correctly endorse the check will depend on the objective and type of endorsement. Some endorsements only require a signature on the back, while others require specific language and additional information. With a mobile banking app, you can deposit a check simply by photographing it, provided you endorse it properly.

When someone pays you with a check, typically you have to sign the back of it before you can deposit it in your account. Signing the back of it is called “endorsing the check.” We have tips on how you can safely endorse a check. Next time you take an old school check in your hand, review its purpose and determine the proper endorsement. Knowing how to endorse a check is part of personal finance management. Use our guide to review all the endorsement types and endorse your next check with confidence.

The term blank is a bit of a misnomer, as it seems to indicate that the check contains no endorsement. In a world where mobile banking apps, online bill pay and electronic transfers rule, you can still receive a hardcopy check. ” Sadly, digital technology and online banking have pushed the art of check writing to the side, but you still need to know your way around a paper check. In the 21st century, only a few of us often go into a bank to deposit checks.

You will also need to write your account number on one line and sign your signature on one line. That said, if it's essential that you get paid quickly, it is safest to endorse checks properly and thoroughly. Even if your bank allows you to deposit a check, that check could come back in several weeks, resulting in the bank removing those funds from your account until everything gets cleared up.