Your Complete Guide for How to Endorse a Check Beyond Borders

The kid cashes the check for a million dollars and goes wild with the money! Meanwhile, the crooks are trying to find him so they can get their money back. While the steps for endorsing a check are very similar in most countries, there are some differences. In this article, we will just focus on how to endorse a check in the U.S. There are several things to monitor, to ensure your transaction goes as smoothly as possible, and you’re always protected.

  • The check is payable to the business—not to you, the individual who owns the business—so you need to sign on behalf of the business.
  • And when you’re paid by check, you need to endorse it before you deposit it.
  • The three ways to process a check are blank, restrictive, and special endorsements.
  • However, the easiest way to cash that check (or deposit money you can later spend from your checking account) is to hand it over to your bank and let them deal with it.

Should the other person not be available to endorse the back, most banks will allow you to endorse the back with “for deposit only” and then deposit the check into an account. However, the account must usually be a joint checking or savings account that belongs to what is unearned revenue what does it show in accounting both of you. To prevent check fraud, the bank may verify to see that you’re an authorized signer on the business checking account. If you’re cashing the check rather than depositing it into a bank account, you may be asked to show photo identification as well.

Restrictive Endorsement

Following these tips can help you avoid the headaches and financial troubles of check fraud. Writing a check isn’t tricky, but there are things to keep in mind to ensure the check will be valid. The process of endorsing a check seems straightforward but issues can arise. These can delay how long it takes for your bank to process a check and they can even prevent your bank from doing so altogether. Bankrate follows a strict
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  • This means if the date is miswritten, or it appears as though the check is more than six months old, the recipient cannot cash it.
  • Follow the tips below to ensure your checks are accounted for and end up where they need to go.
  • To complete a restrictive endorsement, sign the check in the endorsement area as usual and then write the words “for deposit only” underneath your signature.
  • This post will explore all three endorsement methods and talk you through how to use each to process your check.
  • Some endorsements only require a single step, a signature on the reverse of the check.

Then you can provide your correct name in your official signature. As a financial security rule, only endorse the check when you’re ready to deposit it, so there’s less room for it to get lost and end up in the wrong hands. There are a few different types of endorsements, which serve specific purposes. Here’s a breakdown of each and how you can guarantee your check is processed correctly and securely. is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site.

Instead, you can endorse the check by writing “Pay to the order of [Person’s Name]” and then signing the check as you would normally. One way to keep track of the checks you write is to record them in the paper check register that comes with a standard order of checks. Also, to help protect yourself further from check fraud, wait till you’re at the bank to endorse the check, or if you do a mobile deposit–deposit it right away. 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.

However, defer to any check endorsing instructions that appear on the screen. Blank endorsement of a financial instrument, such as a cheque, is only a signature, not indicating the payee. Endorsing a check may seem like a straightforward process, but it’s crucial that you make sure it’s done correctly. Otherwise, there could be issues or delays with the transaction you’re trying to complete. To endorse an FBO check, both parties sign the check, starting with the payee.

To endorse the check, sign your name within the endorsement area. In most cases, “endorsement” simply means that you need to sign the back of the check before you can deposit or cash it. Whether you’re just endorsing the check, adding protections, or signing it over to a third party, this is your last stop. Coordinate with the person to find out which bank the deposit will go into.

Before you sign the back of a check, it is important to know which type of endorsement you should be using in order to ensure you include the correct information. The good news is that it is easy, but it’s important to be sure that your check is properly endorsed. It will decrease any holdups with the money being transferred to your small business’s mobile bank account and it prevents fraud. As a result, it’s wise to get endorsement instructions from your bank or credit union before you endorse the back of the check. These additional steps help reduce the opportunity for fraudulent check cashing or theft. However, not all banks require endorsements for checks to be cashed.

Sometimes this is done if someone is sending payment before the due date or doesn’t have sufficient funds in their account when the check is written. Often, you can order checks online directly through your bank account. Other options include ordering checks at your local bank branch or calling the bank’s customer service number. Hold onto the check until you know it has cleared and the funds are deposited into your bank account. It’s a good idea to destroy the check once credited to your account.

Who Endorses a Check?

In addition to personal hassles (delayed or rejected payments, misdirected fund transfers, the need to re-write a check), erroneous check endorsements can have legal implications. Though not considered legal tender, checks are a form of negotiable instruments that serve as a promise to transfer money from one party (remitter) to another (payee). But even in these modern times, many people and businesses use paper checks. And when you’re paid by check, you need to endorse it before you deposit it. Effectively managing your checking account means acquiring basic skills, including writing and endorsing a check. Knowing how to write a check, endorse it for deposit and order more checks can help you maximize the value of your checking account and your banking relationship.

Some institutions encourage you to write an account number when endorsing the check. Make sure you understand and comply with your institution’s policies. Each institution has its own guidelines, and depending on its policies, institutions may require either or both parties to endorse the check before they deposit it. Endorsing a check is straightforward if you’re the only person listed on the “pay to the order of” line. The process becomes a little more complicated if two or more people’s names appear there. When the writing is illegible, or the signature isn’t contained within the allotted area, the bank could refuse the check.

Restrictive endorsement

Customer deposits, including checks using any variety of endorsement methods, provide banks with the ready cash to make loans. Commercial banks make money by providing loans and earning interest income from those loans. The most familiar example of a blank endorsement is a check made payable to cash and endorsed on the back with the signature of the account holder. It’s wise to wait to sign that check until getting to the bank. Use a fine-tip ballpoint pen and stay away from fountain pens or pencils. Read the fine print in your financial institution’s service agreement before you open a bank account.

Tips for Mobile Deposits

Become a member for only $12 your first year and receive a free gift. Membership gives you access to discounts, programs, and services from numerous trusted brands. While this seems easy enough, there are several ways you can endorse a check, depending on what you’re doing with it. Once you’ve filled out your check, you’d mail it and other required documents to the address provided by ABC Electric. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

Since 2011, millions of people have used Remitly to send money with peace of mind. Visit the homepage, download our app, or check out our Help Center to get started. You may run into this issue when you and your partner receive a paper check from the IRS or another government agency. This is an easier alternative to depositing the original check addressed to you, and then writing a new one to pay someone else (i.e., a supplier, a vendor, etc.). This way you’re protected after the check is out of your hands, and you can avoid a possible security risk. If you find that the check isn’t legitimate, it’s best to destroy it right away.

For extra security, you can still write “for deposit only” in the endorsement area. Technically that’s not an endorsement, but most banks and credit unions would be reluctant to cash that check for anyone. Some banks allow you to deposit checks without a signature, account number, or anything else on the back. Skipping the endorsement can help keep your information private.