August 21, 2024

How to Endorse a Check in 5 steps

Birthdays, rent, paychecks — paper checks are far from obsolete. And for good reason. They offer a secure and traceable way to make payments, especially for larger transactions.

But writing and cashing checks isn’t always simple. Sometimes you want to give the money to someone else or make a blank endorsement so anyone can deposit it. And to do so, you need to know how to endorse a check.

What is a check endorsement?

Endorsing a check means you as the payee are signing it on the back. Most checks have designated endorsement areas.

Endorsement tells the bank that you approve of the transaction. You don’t have to endorse a check to deposit it, but it’s helpful for business transactions or checks meant for someone other than you.

How to properly endorse a check

To correctly endorse a check, follow these easy steps:

1. Confirm information for accuracy

Before endorsing, verify that the information on the front, such as the payee name and amount, is correct.

2. Decide who should endorse the check

If the check is payable to you alone, you can endorse it yourself. But if it's payable to multiple parties, all payees have to endorse the check.

3. Look for the location to endorse

Find the endorsement area on the back of the check.

4. Endorse the check

Sign your name on the back of the check exactly as it appears on the front. For example, if the front includes your middle name, put it on the back, too. This helps the bank make sure it’s the same name.

If the check is payable to multiple parties, all payees have to sign. And if you're depositing the check into a joint account, all account holders must sign.

5. Keep a record t

It's a good practice to record the fact that you’ve made a check endorsement, especially if you're depositing it remotely. Taking a picture on your phone, or even just writing down the check details somewhere, can do the trick. This helps you track the transaction and make sure the bank processes it properly.

Where to endorse a check

Typically, the space for endorsing a check is located at the right end of the back of the check. Look for a blank area above or below a line labeled “Endorse Here” or “Endorsement Area.” This blank area is where you sign your name or add any additional endorsements.

5 types of check endorsements

The signing details vary depending on the scenario. Here are some common types of endorsement:

1. Endorsing to a third party

This endorsement happens when you receive a check but want someone else to deposit it. Sign the back of the check and add, “Pay to the order of [recipient's name].” This transfers the check's ownership to this new recipient. They can now deposit the check into their own account.

2. Blank endorsement

With a blank endorsement, the payer signs their own name on the endorsement line. This makes the check payable to anyone who possesses the check and presents it for payment or deposit. It is recommended to endorse the check right before depositing it.

3. Business endorsement

Some checks have the business’s name as the payee, but an employee or other individual has to deposit it into the business account. To endorse checks like these, sign the company’s name on the back of the check and add the individual payee’s name. Then, the payee can deposit the check into the business’s account.

4. Restrictive endorsement

A restrictive endorsement tells the payee how to use the check. Common examples include “For mobile deposit only” or “For [specific purpose].” This type of endorsement makes sure the money goes where you want it to.

5. For the benefit of (FBO) endorsement

This endorsement happens when a check is for someone else's benefit, but you're depositing it into your account. You sign your name along with "FBO" and the additional person’s name. An example would be a parent receiving a check on behalf of their child.

3 things to keep in mind when endorsing your check

Mistakes and misspellings can keep a bank from depositing a check for you. Here’s how to make sure the money goes through — and avoid potential scams:

1. Misspellings

Make sure the name you write on the back of the check matches the name on the front, or your legal name, depending on the situation, exactly. Even minor misspellings or discrepancies can lead to delays or even rejection.

2. Multiple payees

If a check is made payable to more than one person or entity, make sure all parties endorse it correctly. Each payee may need to sign the check individually or endorse it jointly, depending on the bank’s instructions.

3. Scams

If someone you don’t know well asks you to deposit a check for them, it could be a bad check scam. The person doesn’t actually have the money in their account, and you might face fees and end up paying for it yourself.

Here are some red flags to look out for:

The check is for a large amount that you didn’t expect
Someone asks you to deposit a check into your own account but send the money elsewhere
Someone offers you a check in a scenario that usually wouldn't require one, like getting hired for a job

FAQs

Still not sure how to accurately endorse a check? Here are some of the most commonly asked questions:

What if my name is spelled wrong?

If your name is misspelled on a check, you may still be able to cash it. You just have to endorse the check with the correct spelling of your name. But to make sure the deposit goes through, go to an in-person branch and explain the situation. Bring identification to verify the spelling.

Can I deposit a check without endorsing it?

Some banks let you deposit a check without endorsing it, especially if you're using an ATM or mobile deposit. But it’s a good idea to endorse it anyway. This tells the bank it’s really you, so if there are any uncertainties, the bank will still credit your account.

How do I endorse a check for someone else's mobile deposit?

If you're endorsing a check for someone else's mobile deposit, sign the back of the check and write "For Mobile Deposit Only" beneath your signature. You should also write “Pay to the order of [Recipient]” if the check is going into someone else’s bank account. This endorsement tells the bank you approve of the transaction.

Can someone else deposit my check if I endorse it?

Yes, someone else can deposit a check made out to you into their account, as long as you’ve endorsed it. Just make sure you trust the person you're endorsing the check for because it’s rare to get that money back once it’s in their account.

Can you endorse a check that's not in your name?

Don’t endorse a check that's not in your name unless you've been authorized to do so by the payee. Endorsing a check with a different name may raise suspicions of fraud or unauthorized activity, and banks may refuse to accept the deposit.

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Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

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