What Is Check Endorsing?

Check endorsement is a crucial step in either cashing or depositing a check. If you miss this step, the bank usually cannot proceed with the transaction. So if this is your first time presenting a check for cashing, make sure that you have a full understanding of what it means to endorse a check to a bank.

Check Endorsing

Endorsement is the act of giving your approval to something or someone. Check endorsement is basically the simple act of giving your approval to a bank to retrieve funds from another bank on your behalf. You can endorse a check with your signature or the words "For Deposit Only." Signing your name to the check is like signing a contract. The endorsement area of a check is located on the back of the check above the marked line.

Account Number

Another important part of endorsing a check is to write your account number below your endorsement. Unless you provide the bank representative with an accompanying deposit slip that lists your account information, he doesn't have a way of knowing which account to pull up in order to process the check. In most cases, the bank must verify that you have funds available in your account to cover the check before cashing it in full.

Signing Over A Check

In some cases, a bank will allow you to sign over a check to another person. This is a common situation for an individual who doesn't have a bank account and wishes to cash a check at a friend or associate's bank instead. You must endorse the check with your name and the account holder must sign as well. Some banks may require you to clearly write "Pay to the order of ____" or a similar phrase and then sign your name in the endorsement area.

A Few Other Considerations

In most cases, a bank will ask to see a driver's license or government ID to ensure that your signature on the check matches the one on your license before cashing. Also, if you look closely at the back of a check, below the endorsement area you'll see a message asking you not to sign beneath that line. The reason for this is that the area below the line is where the bank prints its own endorsements and check verification data.