When someone writes you a check, you typically need to endorse it so that you cancash the check or deposit it. Endorsing a check helps the bank verify you as the recipient and authorizes the bank to make the transaction.
To endorse a check, sign your name on the back and include any additional details required to process the check efficiently. A signature is usually all that’s needed, but additional steps can help you control how banks handle your payment and protect you from fraud.
Key Takeaways
- Endorsing a check helps the bank verify you as the recipient and authorizes the bank to make the transaction.
- You may only need to sign your name on the back of the check, but other information may help protect you from fraud.
- For mobile deposits, follow the endorsem*nt instructions in your bank's app.
- To sign a check over to someone else, write "Pay to the order of (payee's name)" below your signature.
How to Endorse a Check
Endorsing a check is fairly simple, but there are a few things to know so that you do it correctly and your money is protected.
Make Sure the Names Match
To be endorsed correctly, the name signed on the back of the check needs to matchthe payee's nameon the front of the check. If your name was misspelled or written incorrectly, sign it with the incorrect version, and thensign again using your correct name.
Sign in the Correct Area
Most checks have a 1.5-inch section on the back for you to write in. This section, known as the endorsem*nt area, is marked with lines and instructions saying, "Do not write, stamp, or sign below this line." (See "Back of the check" in the example image above.) Try to keep your entire signature and any other instructions for the bank in that area.
What to Write on the Back of the Check
You usually need to sign your name, but you may want to add other information depending on what you want to do with the check.
Blank Endorsem*nt
The easiest way to endorse (but also the most dangerous) is to simply sign the check without adding any restrictions. To use that method, known as a blank endorsem*nt, sign your name in the endorsem*nt area. (See "Blank endorsem*nt" in the example.) But only do this if you’re about to deposit the check or cash it immediately after you sign. For example, a blank endorsem*nt might make sense if you’re in a bank lobby or making a mobile deposit at home.
Mailing, Depositing at ATM, and More
If you plan to mail the check to your bank,deposit it at an ATM, or carry it around for a while, use a different approach. Either leave the check unsigned until you’re ready to deposit, or add a restriction to the endorsem*nt. Blank endorsem*nts are risky because somebody else can steal the endorsed check and potentially cash it or deposit it in a different account.
Restrictive Endorsem*nt
A restrictive endorsem*nt helps ensure that a check gets deposited into a particular bank account. (See "Restrictive endorsem*nt" in the illustration.) To use this method, include your account numberwith your endorsem*nt and provide instructions saying the money can only be deposited to your account.
To do so, write "For deposit only to account #####" (using your account number), along with your signature. If the check gets lost or stolen, it's more difficult for thieves to get your money—they'll need to alter the endorsem*nt.
Note
An alternative to including your account number is to write "For deposit only to account of payee," which would require thieves to have access to an account in your name. Depending on the situation, you might or might notalsohave to sign if you specify an account number.
Mobile Deposit Endorsem*nt
If you deposit checks using your mobile device, follow the instructions on your bank’s app. The bank may request that your endorsem*nt indicates that you’re making a mobile deposit. In some cases, you’ll get away with ignoring those instructions, but it’s best to honor the request if a deposit is important.
Endorsing a Check to Someone Else
You cantryto sign a check over to somebody else, effectively paying that person with the check you received. However, that’s not an ideal way to pay somebody. To sign a check over, write "Pay to the order of..." below your signature, and name thenew payee.
Note
Be aware that some banks do not allow this type of endorsem*nt because thetechnique is sometimes used for theft and fraud. Check with all banks involved before you try—both the checkwriter’s bank and the final bank where the check will be deposited.
No Endorsem*nt
You don'talwayshave to endorse checks. Some banks allow you to deposit checks without a signature, account number, or anything else on the back. Skipping the endorsem*nt can help keep your information private. Check writers can often view images online of processed checks, including the endorsem*nt area, after checks are paid. With no endorsem*nt, no one can see your signature or your account number unless your bank adds the account number during processing.
Note
For extra security, you can still write “for deposit only” in the endorsem*nt area. Technically that’s not an endorsem*nt, but most banks and credit unions would be reluctant to cash that check for anyone.
When to Endorse a Check
No matter what method you use to endorse checks, wait as long as you can before signing a check. It's best to sign while you'reatthe bank or you’re in the process of making a mobile deposit. If you endorse checks and they subsequently get lost, it's easier for somebody else to cash the check or try and deposit the check intheiraccount.
Who Signs to Endorse?
In some cases, it's not clear who should sign the check. Again, the personreceivingthe check needs to endorse it. The person whoinitially wrotethe check already signed on the front. (See front and back of check example.)
Checks Payable to Multiple People
If a check is payable to you and somebody else, how should you endorse it? Doeseverybodyneed to sign, or just one of you? Itdependson how the check is written: If the word "and" appears between names, everybody needs to sign.
Checks to Your Business
If you run a business and accept checks, endorsing is slightly different. The check is payableto the business—not to you, the individual who owns the business—so you need to sign on behalf of the business. Anybody else who endorses these checks needs to be authorized to handle funds for the company.
FBO Checks
A check made payable to one partyfor the benefit of(FBO) another must be endorsed by the first payee. For example, the check might be made payable to a retirement account custodian for a rollover transaction that's for the benefit of you. The custodian will endorse the check, and you generally would not need to sign it.
Why Do You Need to Endorse Checks?
When you get paid with a check, that payment is made toyou. You're the only person who can legally collect money from the check writer's account. However, the easiest way tocash that check(or deposit money you can later spend from yourchecking account) is to hand it over to your bank and letthemdeal with it.
By endorsing a check, you authorize the bank to collect payment. The bank then has the right to act on your behalf and negotiate the check.
Again, youcanpotentially deposit a check without endorsing it. Assuming the check is small enough, you deposit it into an account that matchesthe payee's name, and it's not from an insurance company or other organization that requires endorsem*nt, this may be an option. Banks and credit unions regularly accept unendorsed checks and assume that no problems will arise.
That said, if you must get paid quickly, it is safest to endorse checks properly and thoroughly. Even if your bank allows you to deposit a check, that check could come back in several weeks, resulting in the bank removing those funds from your accountuntil everything gets cleared up.
Note
Now that you know what it means to endorse, figure out the best way to deposit checks. With ATMs andmost mobile devices, you can often skip the teller line. You may also be able to eliminate paper checks altogether by getting paid electronically.
Frequently Asked Questions (FAQs)
Do I need to endorse a check to myself?
The short answer is yes. At some point, you may want to write a check to yourself either to get cash or deposit the money into a different account. In that case, you would write your own name on the front of the check, in the payee line. When you're ready to cash or deposit the check, endorse the back as you would with any other check.
When is the best time to endorse a check?
Ideally, you should wait to endorse a check until just before you deposit it. That's the best way to prevent someone from fraudulently depositing a check made out to you. If you do endorse it early, be sure to add a restriction such as "for deposit only" under your signature.
Where do I endorse a check with no lines on the back?
Sometimes you may receive a check that has no endorsem*nt line or box on the back. That doesn't invalidate the check. Simply sign in the usual spot you would on the back and deposit it as you normally would.
