It is always whoever is written in the “Pay to the Order of” line that needs to endorse the check on the back. If the check is written out to a business instead of a person, then someone who is authorized by that business needs to endorse the business check. The bank that holds your business’s bank account will know who is and isn’t authorized to endorse checks to your business. In the case of a blank check, the amount payable is left blank, allowing someone to fill it in a later time. People very rarely write blank endorsements which are also blank checks, and such a document could potentially become a serious liability if it ended up in the hands of the wrong person.
- To make your check secure and provide instructions to your bank, write “For Deposit Only to Account Number XXXXXXXXX.” Then sign your name below that, staying within the endorsement area.
- In this situation, you will use a full endorsement, also known as a special endorsement or a third-party check endorsement.
- For this example, suppose that your electric company, ABC Electric, requires you to mail checks as payment for services rendered.
- A blank endorsement is a simple signature, and does not specify the endorsee.
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. A deposit endorsement is a statement “for deposit only,” making the endorsee the collection agent. The intent is to have the endorser deposit the instrument with that party’s bank. Most checks have a 1.5-inch section on the back for you to write in. The third party refers to someone else that you wish to endorse the check to.
How to endorse a check: Full guide for when and how to endorse a check
That way you’ll be better at protecting yourself against check fraud. One exception to this rule is a certificate of deposit (CD), a savings account that pays a relatively high interest but restricts withdrawals for a time period lasting from 30 days to five years. In general, the owner of a CD account must give notice prior to withdrawing funds before the time limit expires. Even then, the bank may charge a fee and even a penalty for the early withdrawal.
- This leaves room for potential fraud, especially if the check is of significant value.
- Typically, a representative of the business writes the business name, their title and then signs, confirming the deposit into the business account.
- Coordinate with the person to find out which bank the deposit will go into.
- Some banks require extra work with mobile check deposits, which means adding “For Mobile Deposit To [Bank Name]” or something else to your endorsement.
- A “special” endorsement allows the payee to make the check payable to another person.
- All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
This allows checks to be cashed or deposited by a specific party even though they are meant for another. As an added precautionary measure you can even include the bank account number of the checking or savings account you want the check to be deposited into. That way there is no doubt for how the bank teller is meant to process the check. Some types of negotiable instruments may be commonly presented in the form of a blank endorsement for purposes of facilitating the transfer of ownership smoothly. There are also other settings in which the ability to endorse something without indicating a specific payee can be useful. Such instruments should be carefully guarded, however, to ensure that they do not end up in the wrong hands, as anyone can cash them.
Only make a mobile deposit through your bank’s mobile app, and not a third party app, to protect your money. Sometimes, you might want to transfer the check to another individual, in which case you’ll need to make a special or full endorsement. To do so, write “Pay to the order of [full name]” before your signature. It offers flexibility but also requires trust in the person you’re assigning the check to. 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.
At some point, you may want to write a check to yourself either to get cash or to deposit the money into a different account. In that case, you would write your own name on the front of the check in the payee line. When you’re ready to cash or deposit the check, endorse the back as you would with any other check. You’re the only person who can legally collect money from the check writer’s account. 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. By writing your check endorsement this way, you can endorse a check to someone else.
Blank Endorsement for a Check
When it came time to go car shopping, my dad and I got the money out of the bank in the form of a money order. We didn’t endorse it right away because we weren’t sure which dealership we were going to purchase technology in the classroom the car from. When I chose my car and we made the deal, I filled out the money order to pay to the car dealership. @SZapper – I’ve never seen that movie, but I have dealt with a blank endorsement in real life.
If someone pays you with a check and you want to hand that check over to a third person for a payment that you owe them, then you can do this with an endorsement. The endorsement area of a check is found on the back of the check. If you flip your check over you’ll find a section with the words “ENDORSE CHECK HERE” and a box or some lines for you to write your signature.
With online transfers becoming increasingly popular, it’s understandable if you don’t know how to cash a check. This post will explore all three endorsement methods and talk you through how to use each to process your check. Endorsing a check is fairly simple, but there are a few things to know so that you do it correctly and your money is protected. William has a birthday and his grandma, Anne Doe, writes him a check.
How to Endorse a Check for a Minor
How to endorse a check made out to multiple payees depends on what the check writer put on the front of the check. 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. 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).
Endorsing a Check to a Third Party
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. The cost of checks varies depending on where you order them and whether you go with a basic personal check or a more personalized check design.
Checks to Your Business
To avoid such a risk, businesses and individuals should use restrictive endorsements on the checks they receive. A blank endorsement is a simple signature, and does not specify the endorsee. It is the standard endorsement on the back of a check that is then cashed.
Can you deposit a check at an ATM?
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. To do this, log into your bank account via the financial institution’s website or mobile app. Typically, you can find instructions for ordering checks under the customer service or account services section. A third-party endorsement involves signing over a check made out to you to someone else.
You can try to sign a check over to somebody else, effectively paying that person with the check you received. To sign a check over, write “Pay to the order of…” below your signature, and name the new payee. An alternative to including your account number is to write “For deposit only to account of payee,” which would require thieves to have access to an account in your name. Depending on the situation, you might or might not also have to sign if you specify an account number.
