How to endorse a check

By Jennifer A. DiGiovanni

Paper checks may seem old school but they're still a convenient way to make payments or transfer funds to another person. You may receive a check as a gift to commemorate a special occasion, like a graduation, birthday or wedding. Or maybe you received a check for providing a service like babysitting, doing yard work or giving piano lessons. Before you head to the bank or open your mobile app, it's important to understand how to endorse a check properly to avoid processing issues or delays.

What does it mean to endorse a check?

Endorsing a check generally entails adding a signature along with any additional payment instructions on the back. When you endorse a check, you provide an authorization for the payment transaction to take place. Prior to receiving the funds associated with a paper check, the payee or recipient must provide an endorsement, often in signature form. All paper checks, including cashier's checks, as well as money orders, must have some form of endorsement on the back. But the type of endorsement could differ based on the person, business or other entity receiving the money.

How to endorse a check

Signing and depositing a paper check correctly helps to ensure that the payment makes it to your bank account quickly and safely. Here are the steps to follow when endorsing a check:

1. Review the payment information on the front. A check must have a valid date. The amount to be paid should be provided numerically and in written form — these values must match. Also, the front of the check should be signed by the person making the payment.
2. Determine the intended recipient. If that's you, sign your name in the endorsement area on the back of the check. If the check is made out to multiple persons using "and," both parties must provide an endorsement. Checks written to multiple persons using "or" may be endorsed by one or both parties.
3. If your name is misspelled, endorse the check using the incorrect spelling, then add the correct spelling below.
4. If you wish to endorse the check over to someone else, sign your name and add "Pay to the Order of," along with the new recipient's name.
5. When depositing a check, you may also want to add your account number in the endorsement box to ensure the money travels to the right destination. But be aware, the payer, or writer of the check, may see your account information when they receive their bank statement or a notification that the check was deposited.

Note that an endorsement is required for in-person, ATM and mobile deposits. When making a mobile deposit, sign the back of the check and follow any additional instructions provided within your banking app. After completing a mobile deposit, mark the check as deposited and store it in a secure place until you verify that the payment has reached your checking account.

Types of check endorsements

Paper checks are used for a variety of payment transactions. Some of the more complex payments require multiple signatures or additional instructions prior to transmitting funds. Adding instructions on the back of the check can also enhance the security of the payment transaction. Here are the different types of endorsements you may utilize:

• Blank endorsement: The intended recipient simply signs their name on the back of a check prior to making a deposit. This is the easiest way to provide an endorsement, although not necessarily the most secure.
• Restrictive endorsement: In addition to providing a signature, the endorsee also writes "For Deposit Only" on the back of the check. This instructs the bank to deposit the total value of the check into your account and removes the option to request cash back.
• Mobile endorsement: When endorsing a check for mobile deposit, the bank may request additional information prior to processing. In the endorsement area, you may find a checkbox that should be marked when making a mobile deposit. Alternatively, you may want to write "For Mobile Deposit Only" below your signature endorsement.
• Third-party check: If a payee receives a check, but wants the funds to go to someone else, they can write "Pay to the Order of" and the person's name on the back of the check and then sign their own name. However, not all banks will accept these types of endorsements. The intended recipient should first ask their bank if they will accept it before a check is signed over to them.
• Business endorsement: Checks written out to a business, estate or other organization require a different type of endorsement. Prior to depositing these checks, ensure that you're a signer on the business or estate account. You will then endorse the check using the business name and your name. For more complex payment situations, it's always a good idea to check with your local banking representative and ask how they would prefer you to endorse paper checks.
• For the benefit of (FBO): In some instances, a check is issued to one party for the benefit of another. For example, if you change jobs and decide to roll over your retirement account to your new employer's plan, you may receive an FBO check. In this case, the first party listed on the check would be the new retirement plan that receives the funds for your benefit. The new retirement plan provides their endorsement, although the funds belong to you.

Watch out for scams

While electronic funds transfers can be protected with online banking security measures such as passwords, biometrics and other built-in safeguards, paper checks may be more susceptible to certain types of theft, scams or fraudulent use. To protect yourself from these schemes, restrict access to your checks by storing them in a safe location. Review your bank statements each month to make sure that the check you wrote out for $100 wasn't deposited for $1,000. Never deposit a check for someone else, even if they grant you permission. Lastly, avoid sharing your bank account information, especially to unknown parties soliciting you via email or telephone. Find out more ways to protect yourself from risk by visiting Citizens Cybersecurity Center.

Depositing checks through a mobile app saves a trip to the bank.

Rather than add a trip to the bank to your list of daily errands, you can use online banking to send and receive money from the comfort of your home. Mobile deposit is a quick and easy way to make deposits directly to a checking or savings account. Simply endorse your check and upload a picture through your banking app.

When you have a Citizens checking account, you can use the mobile app anywhere, anytime, to safely and securely deposit a paper check.