For instance, if the check is written out to “Jane Doe and John Smith” then both Jane and John must sign the back of the check to endorse it, and be present to cash or deposit the check. That means you don’t have to take a trip to your bank just to take care of a check! Now all you have to do is have your bank’s mobile app and you can deposit checks to your account from the comfort of your own home. Endorse check for deposit only is a type of restrictive endorsement. Restrictive endorsements are useful because they ensure the check will be used exactly how you want it to be used.

Knowing how to write a check, endorse it for deposit and order more checks can help you maximize the value of your checking account and your banking relationship. A mobile check deposit without an endorsement is likely to be rejected, even if initially accepted from your phone. One way to keep track of the checks you write is to record them in the paper check register that comes with a standard order of checks.

A bank or credit union may also flag an unendorsed check as fraudulent, which could delay you getting your money. These requirements could involve restrictive or special endorsements, which set specific circumstances for deposit. Endorsements can also be used to sign a check over to someone else. Most of the time when someone writes a paper check, it requires a signature on the back as a form of verification that you’re the intended recipient. This signature, as well as any other relevant information that’s required in order for the check to be processed efficiently, is called an endorsement.

That is, it is not registered to any individual but is payable to the person who possesses it. A blank endorsement is made when the back of a check is signed without any added restrictions. For security purposes, it is important to wait to endorse the check until you are ready to complete the deposit.

Usually, if you endorse a check via mobile, you will have to do a restrictive endorsement. Be sure to write ‘For mobile deposit only’ in the endorsement area, so that the bank knows what type of endorsement it is. Banks and credit unions regularly accept unendorsed checks and assume that no problems will arise.

Make Sure the Names Match

We’re happy to skip all the fat-cat banking ideas and complex financial terms, so we can provide you with the best options for your business. Writing post-dated checks is legal in most cases, but check your state laws for specific guidance. Sometimes this is done if someone is sending payment before the due date or doesn’t have sufficient funds in their account when the check is written. Writing a check to yourself is another way to withdraw cash from your bank account or transfer money between accounts. While there are more efficient ways to withdraw money from the bank, writing a check to yourself is an option. The reason check endorsements exist is to protect the money of the payer and ensure the intended recipient collects it.

• We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources.
• All you have to do is flip the check over to the back, find the words “ENDORSE CHECK HERE” and sign your signature where indicated.
• A special or full check endorsement provides a greater level of security compared to a blank endorsement because it specifies the intended recipient of the funds.

When a check is made payable to your business, the back of the check should be endorsed with the name of your business. Other information to include when endorsing a business check for mobile deposit includes your name, position and any further restrictions. There are three main types of endorsements and each type of endorsement has its own rules for depositing the check. Before you sign the back of a check, it is important to know which type of endorsement you should be using in order to ensure you include the correct information.

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The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. To do so, you must write ‘Pay to the order of (recipient’s name)’ and then sign the check on the back as normal. Bear in mind that some banks won’t allow you to sign a check over to someone else, due to fraud concerns. The difference between a checking and savings account can seem confusing. Huntington is here to help you understand the differences between a checking and a savings account and how both could help you manage your finances.

How to Endorse For the Benefit of (FBO) Checks

On the other hand, a check made out to a specific payee with the amount left blank can be useful in some settings. There are a number of reasons why people might use a blank endorsement. There may be cases, for example, in which the payee is not yet known, and someone uses a check to create a bearer paper which can be used by the payee to access the funds.

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If someone gives you a check, you must endorse it before you can cash it or deposit it in your bank account. Through your endorsement, you give the bank the legal right to process the check. You can simply sign the check with your name only, add restrictions for how the bank should process the check, or sign the check over to someone else. If you are endorsing a check made out to your small business is only slightly different from endorsing a check made payable to you.

If you choose to put some protections/restrictions on your check, then it can be deposited at any time, within the lifespan of the check. Once endorsed, the bank will only deposit it into the account of the listed payee. If you want to ensure a check can only be cashed by a specific person, or you’d like it deposited into a specific account, you should always include additional protections. Endorsements act as additional security features, which verify that the person writing the check has authorized the transaction, and the person receiving the funds is the legitimate payee.

When endorsing a check for mobile deposit, be sure to do your best to keep your signature on the line and any other necessary information in the endorsement area. The good news is that it is easy, but printing invoices and statements it’s important to be sure that your check is properly endorsed. It will decrease any holdups with the money being transferred to your small business’s mobile bank account and it prevents fraud.

Therefore, it’s crucial that the payer gets this information correct, when they’re filling out the check. Hold onto the check until you know it has cleared and the funds are deposited into your bank account. It’s a good idea to destroy the check once credited to your account. To make your check secure and provide instructions to your bank, write “For Deposit Only to Account Number XXXXXXXXX.” Then sign your name below that, staying within the endorsement area.

Kevin Payne is a personal finance and travel writer who covers credit cards, banking, and other personal finance topics. In addition to Forbes, his work has been featured by Bankrate, Fox Business, Slick Deals, and more. He is the budgeting and family travel enthusiast behind Family Money Adventure. For example, If the check is written out to “Jane and John Doe,” both parties must endorse the check. However, if the check is made out to “Jane or John Doe,” then either party can endorse the check.

This isn’t a very secure way to endorse a check but you can limit the possibilities for fraud if you sign it just before you deposit it. It’s possible to endorse a check in other ways whether you’re passing the funds on to someone else or cashing it. You can use a check made out to you to pay someone else by telling the bank to pay it to that individual. You can also use a blank endorsement and tell the bank teller in person where you’d like the money to go. Though the use of paper checks may have dwindled, they remain a foundational element of basic financial transactions.

If the check gets lost or stolen, it’s more difficult for thieves to get your money—they’ll need to alter the endorsement. When someone writes you a check, you typically need to endorse it so that you can cash the check or deposit it. Endorsing a check helps the bank verify you as the recipient and authorizes the bank to make the transaction. When writing a restrictive endorsement it is important you be as clear as possible in your instructions. You also need to keep your endorsement instructions and endorsement signature in the designated endorsement area and nowhere else.

If the check doesn’t specify “and” or “or,” but just lists the names, then follow the same instructions you would if the check were written with the word “and.” When this happens you’ll want to check whether these names are listed with the word “and” or the word “or.” This will ensure that no one can try and deposit the check again. It also serves as a reminder to you that this check has already been taken care of. In general, whoever’s name is written on the “Pay to the Order of” line is the one who needs to endorse the check.