Despite the fact that checks are not frequently in use as they were a decade ago, having proper knowledge of check endorsement is very important.
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Once a check is written, there is an important need for the endorsement. This is because, without endorsing the check, you can’t cash or deposit it.
Truly, check endorsements differ, and depend on why the check is being issued.Therefore, before you deposit or cash out a check, you need to be careful about signing over it.
When endorsing a check, it is important to sign the back of the check. This signifies whether you’re endorsing the check for deposit or to cash the funds with a bank or third-party.
Need help with tips on check endorsement? This article will serve as a guide on what you need to do while endorsing a check. Below is a table of what to expect, while you relax and read.
What is check endorsement?
Check endorsement is when you simply sing the back of your check.
In some cases, it’s not clear who should sign the check. Notwithstanding, the personreceivingthe check needs to endorse it. This is because the writer of the check already signed in front of the check.
Why Do You Need to Endorse Checks?
It is difficult to deposit a check in your bank account and get paid without approval. This is majorly why you need to endorse checks. By endorsing a check, you authorize the bank to collect payment.
You endorse a check by signing at the back which indicates “endorse here“.
In addition, endorsing acheckmakes the recipient the only person who can legally collect money from the checkwriter’s account.Thus, using and endorsing a check has a top security advantage.
Signing the backof a cheque serves as a security step that helps to verifyyouas the proper recipient of the funds. Also, it helps to authorize the bank to complete the transaction.
Types of check endorsementBlank endorsement.This is the easiest type of check endorsement. The term “blank endorsement” doesn’t mean that an endorsement is blank. Rather, it means the endorsement includes the payee’s signature with no further instructions.All you need to do is to sign your name in the endorsement area behind your check slip.Restrictive endorsement.This type of endorsement helps ensure that a check gets deposited into the right account. It includes your signature and the words, “for deposit only“. A check endorsed this way can be deposited into a bank account but not cashed. If you write “for deposit only” and include a bank account number, the check can be deposited only into that account. Some banks require payees to endorse a check with “for mobile deposit only” to deposit a check remotely with a mobile banking app.This is a safe type of check endorsement. The reason being that even if the check is lost or stolen, it’s more difficult for them to get the money.Endorsement in full.This type of endorsement creates a “third-party check” that you can give to someone else, who can then endorse it and cash or deposit it. To create a third-party check, write “Pay to the order of” and the name of the person to receive the funds in the endorsement space and then sign your name under that instruction.
How do I correct a check endorsement?
Correcting a wrong check endorsement is very feasible, but you can still choose to void the check and start a new one.
However, if your mistake is fixable, draw a neat line through your mistake and write the correction right above it.
Well, it is important for you to note that not all mistakes can be corrected. For instance, if you wrote the wrong amount of money in the written section, then this can’t be corrected. It also won’t be accepted by the bank.
Also, if the amount written in the box is correct but the amount written in words is wrong, you will need to void the check and write another one.
Here are ways you can correct a wrongly endorsed check:If you misspelled a name, wrote a wrong date, or wrong numerical check amount, you can correct it by simply drawing a line across.This should be done neatly with a blue or black pen, and not a pencil. In fact, someone could easily erase your writing and try to use the checkWrite the correction above the mistake neatly.Write your initials next to the corrected mistake. For instance, if your name is John Smith Maxwell, then, you should write J.S.M above the misspelled name.Lastly, if you’re worried that your bank won’t accept your check, call or visit them to ask them before trying to submit it.
How to write/fill a check before endorsing it
Probably, you don’t get to write a check everyday, or perhaps, you’ve never written a check before. Not to worry, checks are an effective and inexpensive tool for moving money; filling it doesn’t take ages.
Don’t sign a check untilafteryou’ve filled. Also, use a pen whenever you write a check. If you use a pencil, anybody with an eraser can change the amount of your check and the name of the payee.
If you want a paper record of every check you write, get checkbooks with carbon copies.
The best places to order checks online in 2021
If your bank does not give you free checks, then, you will need to order them from somewhere else. In fact, youcan orderpersonalchecks from anywhereyou like.
However, before you order your checks, you’ll need some important information. That includes: the account number, routing number, your contact information, and some other basic bank information.
You can find the routing and account number at the bottom of any check.
Order your checks online from any of these websites:
How to endorse a check; Do this while endorsing a check
When done correctly, endorsements make using checks easy. On the other hand, when done wrong, endorsements can make using checks difficult, complicated, or even fraudulent.
Check endorsements differ, depending on the reason the check is being issued. Therefore, the steps that you follow to correctly endorse the check will depend on the type of endorsement made.
Nonetheless, some checks just require a signature on the reverse of the check. On the other hand, others require specific language and additional information for a valid endorsement.
To be endorsed correctly, the name signed on the back of the check needs to matchthe payee namewritten on the front of the check. If your name was misspelled or written incorrectly, sign it with the incorrect version, and thensign again using the correct name.
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Where to Endorse
Most checks have a 1.5-inch section for you to write in. This section, known as the endorsement area, is marked with lines and instructions saying “Do not write, stamp, or sign below this line.”
Now that you know what it means to endorse a check, and of course, how to endorse a check, you have to follow the necessary procedures needed to endorse a check.
Remember, when you have a check that requires you to endorse it prior to depositing, you should always wait until you present the check before a bank teller prior to endorsing it.
In fact, if you lose a check after you’ve endorsed it, anyone who finds it can deposit/cash the amount.