How to Endorse a Check

If someone issues you a check, you must endorse the same before cash, deposit or hand over to the third party so it can be presented to the bank. The endorsement process is like you give legal right to your bankers to process the check. In this article, you will get to know how to endorse a Check.

All you need to do is to simply sign the check with your name only, add instructions as how the bank should process it. Alternatively, you can sign the check over to someone else.

Verify “Check” information is all correct

Before you endorse the check, make sure that the same will be acceptable to your bankers, and all the information mentioned on the front side of the check is correct. You need to verify following information before the endorsement.

• Make sure that the spelling of your name is correctly mentioned; if not, request for a fresh one.
• Amount in figures and words must be the same.
• Check must be signed by the person who gave you the Check.

Some banks will accept an altered check, as far as the person who wrote the check initials the alteration. Though, some bankers refuse to accept altered one, so it is recommended not to present the altered instrument. Ask the person to issue you another fresh check.

Note: A valid check must have mentioned instrument number, account number, and routing number. In absence of the same, bank will not be able to process the check and will be returned unpaid.

How to Endorse a Check

There are several methods to endorse a check, and it depends on what you will do with the money and how it has to be filled out. It is always recommended that you endorse the check just before you get in the queue or during a mobile deposit.

Since, endorsed check can be dangerous for you, if stolen; someone alters the endorsement and misuses it.

The endorsement must be done on the back side of the Check. Most checks have a separate section on the back of the Check for endorsement. If you found a separate section, duly signed it and try to sign your entire signature along with other instructions for the bank, if any.

The most secure way to endorse a check is to write:

• “For Deposit Only to Account Number XXXXXXX” or just “Account Payee”
• Sign it with your name just below but within the endorsement area of the check.

Types of Check Endorsements

There are three main types of check endorsements and each of it needs specific rules to follow while depositing it into the bank.

It is important to mention which type of endorsement (on the back side of a check) you should be using while issuing checks.

Blank Endorsement for a Check

This is the most common yet the least secure way to endorse a check. The Blank endorsement is just signing your name on the back of the check. When you are at the counter of the bank, tell the cashier whether you want to withdraw cash or deposit it in the account.

Blank endorsement can also be possible to deposit it through an ATM or using mobile deposit. Sign the check just before you about to deposit the check.

Check for Third Party Endorsement

When you receive a check from someone and you decide to hand over the same to a third person, then it became a third-party endorsement. The third-party endorsement can be done by the following ways:

• Write “Pay to the order of {Person’s Name}”
• Then duly sign the check

Though, such practice is not considered as a good practice, also some bankers are not accepting Third Party endorsement checks. Confirm with bank before endorsing a third-party check, whether they honour the instrument.

Though, to avoid hassle, you can deposit the same check in your account, and issue a fresh check to the third person so that he can get the payment conveniently.

Restrictive endorsement

When you particularly want your check to be deposited into bank and not withdrawn as cash. You can endorse by writing “Account Payee only” on the front side of the Check.  This type of endorsement called restrictive endorsement.

Such check endorsed this way must be deposited into bank and not cashed.

Who Endorse a Check?

The person who receives the check is the one who endorse it. Though, an endorsed check becomes negotiable, and it can be cashed or deposited by anyone, even if you are not the payee. For example, if the front side of the check says “Pay to the Order of Mr. Peter Joseph”, then Peter Joseph is the person who endorse the check.

Frequently Asked Questions – FAQ

What is the correct way to endorse a check?

Most of the banks give a separate space for the Check endorsement on the back side of the Check. So, payee must endorse the check accordingly by duly sign it on specified space on the back.

The endorsement space would be like blank lines and an “x” that indicates where you should sign your name.

To endorse a check, all you need to do is to simply sign your name.

How do I sign over a check to someone else?

If you want to hand over the check to a third person, then you should endorse a check on the back by writing “Pay to the Order of Mr. XXXX” and duly signed it.

It is compulsory to write the name of an individual (third-party) to whom you are handed over the check to along with your signature. This is an indication to the bank that you are endorsing the transfer of ownership of the check.

Can I deposit someone else’s check in my account?

Yes, you can! If the payee endorses the check over to you, then you can deposit it and get money into your account. Payee must write on the back of a check “Pay to {Your complete name}” and signed it.

The spelling of your name must match exactly with the bank’s record. So, pay attention when someone endorse a check in your favour.

Can I deposit a check without endorsing it?

Yes, there is no need to endorse a check every time you deposit it in your account. However, it is recommended that you mention your account number along with a contact number of yours, as it will be easier for the bank to deposit it into account.