How To Endorse A Check?
Check endorsement is mostly done when you get paid with a check. It is a way to cash the check or if you want to deposit it. The steps to check endorsement are easy and all you need to do is write your name on the back of the check. However, there are certain ways to do it. So, how to endorse a check?
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How to endorse a check?
In order to endorse a check correctly, the name you sign on the back of the check should be the same as the payee name mentioned on the front of the check.
- Endorsement area: At the back of the check, you will find a 1.5-inch section known as the endorsement area. This area is marked with instructions “Do not write, stamp, or sign below this line.”
- Blank Endorsement: This method is the simplest way but involves a bit of risk. All you have to do is put your signature and leave it. It is advised that blank endorsement should be done only when you are about to cash it or deposit it at the bank. In case you are mailing the check, or going to deposit it in a day or two, leave it unsigned or restrict the endorsement. This is so because the check might get lost and someone else can get it cashed or deposit in some other account.
- Restricting the endorsement: In case you want to restrict the endorsement so that the money is added to your account only, write your account number also. This way you make it certain that the money from the check is going to your account only. By adding your account number, you also make it tougher for the thieves to cash it for themselves.
- Zero or No endorsement: In some cases, certain banks permit you to cash or deposit checks without endorsing it with your signature or account number. This way you can keep your signature, account number and other information private.
Whose signature do you need to endorse?
To recap what was said at the beginning of the post- the person who receives the check signs at the back to endorse it. Simple!
- Checks paid to a business: A check paid to a business is different from a check paid to a person. This means the endorsement of that check will be different from the normal check. In this case, a person who is authorized to manage the funds of the business can sign on behalf of the business.
- A check due to a number of people: If a certain check is payable to more than one person then they need to check the statement written on the check- If the check mentions the word “and” then all of the recipients need to sign it.
What is the need for endorsement of checks?
When a check is written for you, it gives you the legal right to cash the check. As you endorse the check, you give permission to the bank to collect the payment on your behalf and cash it to your account.
In case your requirement to cash the check is immediate, endorse the check properly and thoroughly. Though the bank might allow you to deposit the check, the processing will take a week or two.
It is best advised to sign the check when you are at the bank and are just about to deposit it. This way there is no space for losing your check or someone stealing it.
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