Getting a check as payment but unsure how to actually use the funds? Properly endorsing a check is a crucial first step in the process. Do it incorrectly, and you could face denied deposits, long holds on the money, or even fraud.
This comprehensive article covers everything a beginner needs to know about check endorsements. We’ll explore what endorsements are, the step-by-step endorsement process, special scenarios, deposit vs. cashing, and much more.
After reading, you’ll feel confident in securely endorsing any check that comes your way. Let’s get started!
What is a Check Endorsement?
An endorsement refers to signing the back of a check, which transfers legal ownership of the check to you as the payee (the person the check is written out to).
Your signature authorizes the bank to either deposit the funds directly into your account or give you the cash amount in person.
Essentially, your endorsement guarantees to the bank that you are indeed the intended recipient of the check. Without a payee’s signature, a check is not valid.
Endorsements prevent fraud by verifying you are the proper payee. But done incorrectly, they can cause lengthy delays in accessing funds or other issues.
The Step-By-Step Guide to Endorsing a Check
Ready to endorse that check and get your money? Follow these steps:
1. Inspect the Check Details
First, inspect the front of the check carefully and validate:
- Your name (the payee’s name) is spelled 100% correctly
- The date written is valid (not expired or post-dated)
- The numerical and written dollar amounts match
- The account owner’s signature is present
If anything looks amiss, contact the payer before proceeding.
2. Sign Your Full Name on the Back
Flip the check over. You’ll see a box labeled “Endorse Here” with a few blank lines.
Sign your full name on one of these lines just as you would on any other document. No nicknames. Use black or blue ink and never pencil, which could be erased.
3. Add Any Endorsement Instructions
If needed for your situation, add specific instructions in this endorsement area:
- “For deposit only” prevents anyone else from cashing the check if lost or stolen
- Add your account number if depositing to your account
- “For mobile deposit only” may be required by your bank for phone app deposits
We’ll cover more special endorsements later.
4. Note the Bank’s Processing Warning
Under the endorsement box, you’ll see a notice like:
“Do not write, stamp, or sign below this line”
This leaves room for the bank to add processing codes and signatures on the back. Don’t make any marks in this area.
5. Submit the Check Promptly
To complete the process, bring the endorsed check to the bank teller, or ATM, or use your bank’s mobile app to submit it for deposit ASAP.
For added security against fraud, avoid leaving endorsed checks lying around. Only sign when you are ready to submit.
Special Endorsement Scenarios
While the basics work for most personal checks, you may encounter special situations. Here’s how to properly endorse checks when:
- Your name is misspelled: Sign both the incorrect name printed AND your real name below it.
- Two names are listed: “And” means both must sign, “or” means only one.
- It’s for a business: Sign the business name and your title.
- You’re depositing remotely: Add “For mobile deposit only” if required.
- If you want to limit your deposit: Add “For deposit only” and/or an account number underneath your signature.
- You’re signing over to a third party: Endorse “Pay to the order of [their name]” and add your signature. Not all banks accept these.
- If you want to cash it: Leave it blank just sign. Tell the bank teller you want cash.
Talk to your bank if you have questions on the best endorsement for any specific situation.
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Cashing vs. Depositing Your Check
Once you’ve endorsed a check, you have two options to access the funds:
To cash the check, you can take it to the bank that issued the check or visit a check cashing service. Be prepared to show a valid ID – they will verify your signature matches the endorsement and hand over cash for the check amount. This is a quick way to get immediate access to the money.
To deposit the check, you can use an ATM, give it to a bank teller, or use your bank’s mobile app to scan the check for deposit. Before submitting, double-check that your endorsement meets any special requirements your bank has for remote or mobile deposits. The funds will be added to your chosen bank account and available within the bank’s standard holding period.
No matter which method you use, a proper endorsement will keep the money secure until it reaches you.
Be sure to only sign the check when you are ready to cash or deposit it. Leaving an endorsed check lying around can increase the risk of fraud if it is lost or stolen. Handle it with care.
Common Check Endorsement Q&As
If you’re new to endorsing checks, you probably still have some questions. Here are answers to some frequently asked questions:
Do I always need to endorse a check?
Almost always, yes. Unsigned checks are not valid for banks to process and clear. The only exception is if your bank specifically says an endorsement is not required for depositing checks below a certain small dollar amount.
What if I’m not the intended recipient?
Do not endorse it. Checks can only be legally endorsed for deposit or cashing by the original payee named on the front. If you receive a check made out to someone else, contact the payer and notify them it was made out incorrectly.
Where do I endorse a joint check?
In the standard endorsement area on the back. If two payee names are joined by “and” on the front, both payees’ signatures are required to properly endorse it. For “or”, either party can sign to endorse.
Can I deposit a joint check via the mobile app?
Maybe, depending on your bank’s specific policies. For checks with multiple payees, some banks may require both to endorse it in person before it can be deposited through mobile. Check with your bank.
What’s the safest way to endorse a check?
Write “For deposit only” and add your account number underneath your signature. This limits where the check can be deposited if it is ever lost or stolen.
How does a business endorse a check?
Sign the name of the business first, then underneath sign your own name and title indicating you are an authorized representative of that business. Ex: “ABC Corp – Jane Doe, Accountant”.