Checks aren’t as common today as they once were, but they’re still in use. If someone gives you one, you should know how to endorse it so you can:
— Cash it
— Deposit the funds into your checking or savings account
— Give the check and the money it represents to someone else
Done correctly, endorsements make using checks easy. Done wrong, endorsements can make using checks difficult, complicated or even fraudulent.
Here’s what you need to know:
— A check is a slip of paper that instructs a bank or credit union to pay a specific sum of money to a particular payee, such as a person, company, organization, government agency or other recipient.
— To be valid, a check must include a date, the payee’s name, the amount and an authorized signature for the checking account from which the money will be withdrawn.
— To receive the funds, the payee must sign, or endorse, the back of the check. This signature informs the financial institution that whoever signed the check is the payee and wants to accept the money.
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How to Endorse a Check
Endorsing a check is a simple process, but it’s important to pay careful attention to the details to ensure a smooth transaction. Whether you plan to bank some funds for yourself or sign over a check to someone else, follow these steps to give a successful endorsement.
1. Confirm the Information
Before putting any more pen to paper, double-check the information on the front to make sure you are endorsing the correct transaction. This includes reviewing every part of the check to confirm the amount, the date, the payee’s name and the payer’s signature. If you spot any mistakes or missing pieces of information, contact the payer and ask for a valid check.
2. Find the Endorsement Area
On the back of the check you’ll see a few blank lines and an “x” that indicates where you should sign your name. The back might also say, “Endorse here” and “Do not endorse / sign / stamp below this line.” The warning is there because the bank also uses the back of the check for its check-processing data.
3. Sign the Check
To endorse a check, you simply sign your name on the back of the check. Never sign a check in pencil, because it can be erased. Blue or black ink is best and should show up well and clearly on the back of most checks. If you’re not sure how to endorse a particular check, you should ask your financial institution for help.
Types of Check Endorsements
A signature endorses most of the checks you’ll come across, but there may be other instructions depending on the situation. There are different types of check endorsements, including:
— Blank endorsement. This includes your signature with no further instructions.
— Restrictive endorsement. This type of endorsement includes your signature and the words, “for deposit only.” A check endorsed this way can be deposited into a bank account but not cashed. If you write “for deposit only” and include a bank account number, the check can be deposited only into that account.
— Endorsement in full. This type of endorsement creates a “third-party check” that you can give to someone else, who can then endorse it and cash or deposit it. To create a third-party check, write “Pay to the order of” and the name of the person to receive the funds in the endorsement space and then sign your name under that instruction.
— Business endorsement. When a check needs to be made out to a business, it needs to be endorsed by someone who works for the company and lists their company title in print form. Above your name, you should write the name of the business.
— Mobile endorsement. Some banks require payees to endorse a check with “for mobile deposit only” to deposit a check remotely with a mobile banking app.
When Should You Endorse a Check?
Don’t endorse a check with just your signature and no further instructions until you’re ready to cash or deposit it. A check that’s endorsed this way becomes negotiable, which means it can be cashed or deposited by anyone who presents it to the bank, even if that person isn’t the payee. Treat an endorsed check like cash, and protect it accordingly.
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Endorsing a Check FAQs
When you endorse a check, you might encounter a few tricky situations. Here’s how to handle them:
What if my name is spelled wrong?
If you’re the payee on a check, but your name is misspelled or incomplete, you should complete your correctly spelled signature underneath the misspelled name.
What if I receive a check payable to two people?
If you receive a check that shows you and someone else as payees, you might both have to endorse it. Who must sign depends on whether the check is payable to you and someone else, or to you or someone else. In the case of “and,” both of your signatures are required. In the case of “or,” either signature alone should be adequate.
Can I deposit a check without endorsing it?
Maybe. If the check is for a relatively modest sum and you bring sufficient identification, some banks might accept that check without an endorsement. The bank might also impose a longer waiting period before you can withdraw the funds from your account.
How do third-party endorsements work?
If you are the payee on a check, you can sign it over to someone else with a full endorsement. Not all banks will accept a third-party check because it comes with a higher risk of fraud, but some banks will. A better practice is to deposit the check yourself and write a new check from your checking account to the third party.
More from U.S. News
How to Set Up Direct Deposit at Your Bank
How to Transfer Money From One Bank to Another
How to Endorse a Check originally appeared on usnews.com
Update 04/17/26: This story was previously published at an earlier date and has been updated with new information.
