How to endorse a check

Quick insights

• Endorsing a check is typically a straightforward but vital process whether you’re cashing or depositing the check.
• To endorse a check correctly, you’ll need to sign a specific area on the back of the check and may need to write in additional words or phrases.
• Proper check endorsement can help ensure checks are cashed or deposited without issues.

The convenience of digital, peer-to-peer payments and direct deposit has made cashing checks less common these days. However, endorsing a check correctly is a straightforward requirement that helps prevent delays or issues in processing.

How to endorse a check properly

Endorsing a check doesn’t require many steps, but it’s important to take your time through each one. Skipping a step or making an error when endorsing a check could jeopardize whether a bank will accept and process it.

Here’s what you need to do to endorse a check:

• Inspect the check: Confirm it’s made out for the correct amount, isn’t dated for the future and doesn’t say “VOID” anywhere. Any of these elements could prevent you from processing the check. Make sure there is no extra writing on the check or stains that could obscure information on it.
• Check the signature: The check has to be signed by the person named on the account. Cross-reference the name in the top-left with the signature in the bottom-right. Failure to have a check signed by the account holder could cause it to be rejected.
• Locate the endorsement section: There should be an endorsement section on the top or bottom of the backside of the check. While you’re there, examine this area to ensure it is clear of any extra marks.
• Prepare to use blue or black ink: The use of markers, crayons, pencils or other ink colors may result in the check not being deposited successfully.
• Add your signature: Sign your name so it matches the name in the payee field of the check. As the endorser, you must be the person to whom the check is made out, ensuring that the intended person deposits the payment.

There may be additional steps to take depending on your bank or how you’re depositing the check. If you are depositing through a banking app, for example, there may be a box to check indicating the check is being deposited online. The app should provide specific instructions.

Blank check endorsement

A blank check endorsement is when you sign a check with just your signature in the endorsement area. This can happen when you deposit a check physically at an ATM or bank branch. There, you can choose whether you want to cash the check or deposit it. In person, you may need to tell the bank representative your preference.

Restrictive or special check endorsement

You can use a restrictive check endorsement to limit how the check is used. This is usually to prevent an unauthorized person from cashing or depositing the check if it’s lost or stolen. A restrictive endorsement can also ensure the money is used for a specific purpose.

The most typical restrictive endorsement is "For Deposit Only," which restricts the ability to cash a check over the counter or endorse it to another party. You could also include special instructions, an account number or name on the back, as in "For Deposit Only to [Bank Account Number / Name]."

Mobile check endorsement

Mobile check deposits often come with their own rules regarding how checks can be accepted for deposit. The steps you must follow may differ by financial institution. Some institutions may recommend that you write “For Mobile Deposit Only” underneath your signature when endorsing a check.

In recent years, checks have started to include a checkbox that you can mark to signify that the check is for mobile deposit. Check with your bank or your mobile app to understand their specific requirements.

Business check endorsement

If a check is made payable to a business, the check must be signed on behalf of the business by an authorized person. If that’s you, sign the business’ name exactly as it appears on the pay-to line. It can be helpful to include your title within the company, such as Partner, Accountant, etc.

For the benefit of (FBO) check endorsement

FBO checks can be deposited by someone other than the person to whom the check is made. The most common example of this type of endorsement is when an institution or custodian is depositing a check on someone’s behalf.

For example, if a parent were to endorse a check for their child, both the parent’s and their child’s name would appear on the pay-to line. The parent would have to write on the memo line of the check. First, they’d sign their name, then they’d write “FBO” followed by the name of the person for whom they are signing.

When to endorse a check

To help ensure the safety of your money and information, wait to endorse a check until you’re ready to cash or deposit it. As an extra precaution, you can wait to add your signature until you arrive at the bank or open your banking app to make a mobile deposit. This can help prevent fraud or other misuse of the signature line on the check itself.

Here are the main situations when you’d endorse a check:

• If you’re pulling money out for immediate use
• When you’re cashing a check
• When you want to deposit funds into a savings or checking account
• When you sign a check over to someone else

Benefits of endorsing a check

When you endorse your checks, you create a clear record of who is receiving the money. Adding your signature can help ensure that only the intended recipient can deposit or cash it, helping reduce the likelihood that someone can forge your name. Endorsing a check correctly also streamlines the banking processes, so the payment can happen smoothly.

Recap

Endorsing a check typically involves a little more than adding your signature on the back of the check and choosing a deposit method. That said, there may be additional steps required in certain contexts, especially if you’re depositing through the bank’s mobile app. In short, it’s critical to examine the information on a check carefully before adding your signature and endorsing it.