While checks can vary depending on who issues or prints them, the back of a check generally has three separate sections. If the check is lost or stolen after you endorse it, your restriction such as adding "for deposit only" makes it hard or even impossible for someone to steal the money. Banks use this space to note the flow of events when a check is processed. Security box: This is a security feature that contains a warning that helps discourage thieves from altering or copying the check.
It also provides tips to help consumers determine if a check is actually legitimate. For example, it might suggest that you look for microprint or watermarks on the check. There's a lot of confusion about where signatures go. Do you sign the back of a check when you write it or is that the recipient's job? When you write a check, the only place you need to sign is on the front—right on the signature line. However, it is possible to include instructions on the back of a check when you write it.
Along with your signature, you might include instructions that limit how the check can be used. If you're receiving instead of writing the check, you may, in many cases, get away with depositing it without a signature if the check was made payable to you.
However, it is safest to sign the check. Without a signature, the check might be sent back to the issuer, resulting in fees and delays in getting your money. Even if your bank deposits a check without a signature on the back and you see the money added to your account, that check might get rejected a week or two later. Select personalised ads. Apply market research to generate audience insights. Measure content performance.
Develop and improve products. List of Partners vendors. Your Money. Your Practice. Popular Courses. Banking Checking Accounts. Key Takeaways Endorsing a check is a relatively simple process that significantly improves your banking security. Different types of checks require different types of endorsement, but most involve signing the back of a check to prove that you are the legal owner of the funds it represents. What Is a Blank Endorsement?
What Is a Restrictive Endorsement? What Is a Third-Party Endorsement? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
Related Articles. Banking Banking Partner Links. Related Terms Pay to Order Definition Pay to order refers to negotiable checks or drafts paid via an endorsement that identifies a person or organization the payer authorizes to receive money. Understanding Checks A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.
Endorser An endorser is authorized to sign a negotiable security in order to transfer ownership or to approve the terms and conditions of a contract. What Endorsements Mean, and How They Work An endorsement is an amendment to a document or contract, an authorizing signature, or a public declaration of support.
It's better to have the person write you another check. A valid check has a line at the bottom with the routing number and account number. If that line isn't present, the bank will not be able to process the check. Determine who must endorse the check. If only your name is listed on the payee line of the check, your signature is all that is needed to cash or deposit the check.
If the check says "or," or includes ambiguous language or symbols such as a dash or a slash , either of the people named can cash or deposit the check. They generally cannot cash or deposit the check without your signature.
However, if you have a joint bank account, they may be able to deposit the check in that account on your behalf without your signature. Find the gray lines on the back of the check. If you flip over the check, you'll see 3 to 5 gray lines. These typically appear on the upper short side of the check. You'll also see a solid line with instructions not to write below the line.
Make sure your signature doesn't extend into that space, or the bank may refuse the check. Sign your name on one of the gray lines. To endorse a check, you typically only have to sign your name in pen using blue or black ink. If your name on the check differs from your name on your government-issued photo ID, or on your bank account, you may want to print the correct spelling of your name under your signature.
You may also want to add your job title to show you are authorized to cash or deposit the check in the name of the company. Cash or deposit the check immediately. Once you've signed the check, it becomes a "bearer instrument," meaning anyone who finds it can cash it.
If you're traveling to the bank, don't sign your check until you get there. If you go to a bank to cash the check and you don't have an account with that bank, you typically must show a government-issued photo ID. You may also have to provide a thumbprint for identification services. Check cashing services will charge you a fee to cash the check.
Banks typically charge a fee as well, unless you have an account with that bank. If you don't have a bank account, you may want to take this opportunity to open one, using the check is your initial balance. Otherwise, you can get the check cashed at a check-cashing service available at discount or grocery stores.
You can also go to the bank that issued the check. That bank will have its name and logo printed on the front of the check. Method 2. Write " For Deposit Only " on the top endorsement line. This restrictive endorsement ensures that the check's funds can only be deposited in a bank account in your name.
If someone finds your check, they won't be able to do anything with it. Include your bank account number. Some banks require you to include the account number where you want the check's funds deposited.
Even if it's not required, it might be a good idea if you have more than one bank account at the same bank. For example, if you have a checking account and a savings account, you would typically want to include the account number for the account you want to use. While you'll also include this information on the deposit slip, it helps to also put it on the check in case the two get separated.
Additionally, checks deposited using an ATM or a mobile app may not have deposit slips. Because it's a security risk, if you're traveling to the bank to deposit the check in person, wait until you get there to write your account number on the check. Sign the check below your restrictions. Once you've included the deposit restriction, sign the check as you normally would, using a pen with blue or black ink. If you do not follow their specified rules, it can result in the check being voided.
Call your bank and explain that you intend to deposit a check that has been made payable to someone else.
Ask what you need to have them write on the back of the check, and be sure to ask if you both need to be present to deposit it. Some banks require a form of ID from the other person so that they can validate the identity of who is signing over the check. The exact process whereby someone endorses a check so that you can deposit it into your own account may vary from bank to bank or credit union to credit union.
In general, this involves the person writing your name on the back and signing the check. Every check has a specified area on it where the payee can write their name or other information. Typically, this involves writing the phrase "Pay to the order of: Your Name" and signing their name underneath your check.
Again, be sure to check with your financial institution to make sure that you are going through the process correctly. Depositing a check for someone into their own account is a bit more straightforward as it does not involve the transfer of payees.
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