It is hard to deposit a check, when it is not endorsed. I know that for a fact, because there has been time I did a mobile check deposit without check endorsement. Then, the check comes bouncing back as a result. If we do not endorse a check correctly, hardly any financial institution will touch it.
Do you know why, my dear reader?
It is because to endorse a check is to authorized whoever is paying you out to give you cash for the check. Without such authorization, anyone could claim to be the authorized cashier of the check. So on the article, I am going to walk you how to endorse a check.
This is whether you are endorsing it for yourself, a mobile check deposit or even to someone else. Oh yes, a check can be endorsed to someone else. Before I start though, I want to talk about the different ways you can endorse a check so it can be cashed. A check for mobile deposit, is not the same as endorsing to someone else.
Your check could bounce, when it is not properly endorsed. This is especially, when you are trying to cash it using the non-traditional way. I will walk you through how to do it, then I will talk about the different ways to endorse a check since the way we endorse checks depends on how we are cashing it.
How Do You Endorse A Check Correctly For Deposit?
On the back of most checks, there is an endorsement area. It has a blank link with an “Endorse here or endorsement area” letters. We are expected to sign the area with our signature authorizing payment to us.
The endorsement area is usually on the top on the back of the check. Now, there are many ways to endorse a check for deposit. All checks that need to be signed on the back for deposit, but there are some financial institutions which will ask for other things below your signature.
What do I mean by this, my dear reader?
There are different times of check endorsement. Some check deposit methods like a mobile check deposit, want you to write “for mobile check deposit” below your endorsed signature. I know- I am going to explain these different endorsement types below.
The Different Types Of Check Endorsement
There are different types of check endorsement. Each depends on the way the check is being cashed. What do I mean by this, my good reader?
Well, if you think driving to a bank to deposit a check is a hassle like me, you may decide to do it using check cashing apps. The way you endorse that check for check deposit apps, will be certainly different from someone who decides to use a bank for it.
Here is what I mean below.
Mobile Check Endorsement
On how to endorse a check for mobile deposit guide, I walked you through all you need to know about this process. But, I am going to reiterate it here again. Each mobile check cashing service, whether bank or fin tech, has a different requirement for endorsing for mobile deposit.
Most will require to write “For mobile deposit” below your signature on the endorsement area.
In fact, some checks nowadays come with another line below the endorsement signature for you to specify the check is being cashed via mobile check deposit. I always recommend you ask the mobile check deposit service you are about how it wants the endorsement.
I advise this, because one of my banks wants “Credit Human Mobile Deposit” below my endorsement signature. Other banks may want something totally different.
Blank Check Endorsement
If we are planning to deposit a check at our banks, this is the type of check endorsement we use. On the back of the check where it says to endorse the check, we just sign it. That is it.
All physical check cashing at banks will take a blank check endorsement. This is since this is as long as the check is made out to you, or sign to you. Now, let us talk about when you are trying to use a mobile deposit to cash the check.
Third-Party Endorsement
We do this kind of check endorsement when we are not the original names on the check. Let us say we are trying to cash a check, which was not made for us. This is when this kind of check endorsement is needed.
Firstly, we need the permission of the person so it is not considered a check fraud. The original person to whom the check is made to would have to do the following below:
- Sign the endorsement area.
- Then, write “Pay to the order of (your legal name here)“.
All you need to cash the check, is to take a legal form of ID with you. This is so a bank can confirm you are the person to whom the check is signed over to. If you still have questions on signing a check to someone else, I answer the question on how do you endorse a check to someone else.
Special Endorsement
I always find this one to be weird. This is because it requires you to follow the instructions on the endorsement, otherwise the check will not be cashed. What do I mean?
Well, a special endorsement on a check usually says how the check is to be cashed. After the endorsement signature, it could include “For deposit only” or “For Deposit only by first and last name”. What this means, is the check cannot be cashed by either other means other than a bank deposit.
Additionally, the check can only be cashed by the person to whom the check is made to. That means the check will not be signed to someone else. Yeah I know, a special endorsement on a check kind of restricts who gets to cash it or by what means it is cashed. Hence, why I said it is weird and I hate cashing checks endorsed with special endorsement.
Who Signs To Endorse A Check?
So, who endorses a check?
The person whose name is on the check endorses a check. This is even if the check is signed over to you. The only difference here is the person signing over the check has to mentioned the check is now payable to you.
And, you do not have to endorse it a second time in this kind of situation.
Now, a check with your name on it requires you to endorse it. This is because it is made out to you. When you endorse it, you are authorizing a bank to pay you the check amount.
What Could Possibly Go Wrong?
A bounced check.
I hate it when it happens to me. Now, a check can bounce for many reasons. But, a check which is not properly endorsed will always bounce.
The worst part of it, is some banks will punish you for depositing a bounced check. I talked about this on what happens when a check bounces. The punishment can range from a restriction on your bank account to an outright removal of some banking privileges.
I do not mean to scare you, but I am talking from personal experience. It happened in my early twenties, when I was learning to write a check. In my thirties now, I have not had a check bounced on me for more than 8 years now.
So yeah, be sure you are endorsing your check the right way. If you are going to a bank to deposit the check, use a blank endorsement. Otherwise, you can use the other type of check endorsement.
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