So, check your check to make sure! To negotiate that check, Joe Doe would also have to endorse the check underneath your signature in order to receive the value of the check. As an example, a check made payable to you and your Bank must be endorsed by both. If the payee of a check you have written fails to endorse a deposited check, that check may be returned to you.
By returning an unendorsed check, the Bank is protecting you against the negotiation of a stolen check. You're probably familiar with the routing and account numbers on the front of a check, but what about those numbers printed on the back? Pre-printed numbers in the endorsement area are often reference numbers used to track checks.
They are especially helpful for businesses that print checks on blank check stock. Numbers outside of the endorsement area are added by banks that handle the check when it is cashed or deposited. Those banks print their information on the check and then send it on to the bank that will ultimately release the funds. Consumer Financial Protection Bureau. Accessed June 22, Check Payment Systems Association. Central One Federal Credit Union.
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There are, however, a couple of exceptions to this. A second is that certain banks offer a service whereby they will deposit a check with no endorsement. However, there is usually a longer wait before the funds clear , and you will likely have to confirm your identity. A blank endorsement consists simply of the signature of the person to whom the check is made out on its back side.
This makes the check negotiable tender for anyone holding it, not just the endorser, so it is not a very safe from of endorsement. That said, it is the most common form. This prevents anyone else cashing or depositing the check. In this case you are signing over a check made out to you to someone else. Then you sign your below that.
A number of banks will no longer accept such an endorsement, so make sure in advance that your bank will. And even if it will, it may require you to be present for identification purposes when your third party cashes or deposits the check.
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 of them involve signing the backside of a check to prove that you are the legal owner of the funds it represents. Learning how to endorse a check is a basic part of financial literacy, so make sure you know how the system works.
The Law Dictionary. National Check Fraud Center. Accessed Oct. Money Instructor. Santander Bank. Cornell Law School. News and World Report. Checking Accounts. Personal Finance. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
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I Accept Show Purposes. 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.
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