For some time now, as online banking and payment apps like Venmo and Zelle have become popular, check writing has been on the wane.
But for generations, that wasn’t the case. People used to receive paper checks all the time; anyone and everyone quickly learned how to endorse a check.
But we are no longer in an era of check writing. For instance, back in 2003, the Federal Reserve operated 45 check-processing centers around the country, managing vast volumes of checks. Today, there’s only one in Atlanta.
So, if you’re unsure how to endorse a check, that’s understandable. Here’s a quick tutorial.
What does it mean to endorse a check?
When you endorse a check, you’re putting your signature on the check — and sometimes, offering instructions for deposit. Bottom line: To endorse a check is to give a bank permission to process that check.
Most banks suggest that you use a pen with black or blue ink when signing your name. It’s easier to read than, say, red or green ink.
Read more: Can you cash a check without a bank account or ID?
How to endorse a check
The process for endorsing a check depends on the situation. Here are the different types of check endorsements and how to do each one:
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Blank endorsement: This is the most common way to endorse a check. There is a blank line on the back of the check where you’ll sign your name. Then all you have to do is deposit the check. If you deposit it without endorsing it first, it could delay the time it takes to clear.
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Restrictive endorsement: In this case, you write “for deposit only” and then sign your name. A lot of traditionalists write this for any check they intend to cash. And it’s not a bad idea if you don’t plan on depositing the check right away. The “for deposit only” directive pretty much guarantees that if the check were stolen, someone wouldn’t be able to take the check into the bank and exchange it for cash (an unlikely scenario since the thief would probably be asked for a photo ID).
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Mobile deposit endorsement: Some banks will ask you to write “for mobile deposit only” before you sign your name if you’re using mobile check deposit. But not all banks require this. In any case, if you are asked to do this, you are simply endorsing your check and acknowledging that you’re making a mobile deposit through your phone.
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Business endorsement: Do you own a small business? If somebody wrote out a check to your business, your bank may want you to write your business name, your title (i.e., owner), and then your signature.
How to endorse a check to someone else
You may occasionally receive a check for funds that you want to give to someone else.
In this case, you’ll write along the lines of “pay to the order of” and then the person’s name, followed by your own signature.
However, many banks will require you to accompany the person you want to give the check to and verify your endorsement in person. If the check is deposited through an online banking app, it could ultimately be denied if the bank manager decides they need your confirmation that you really intended to give this check away.
Because of the uncertainty and confusion that can revolve around endorsing a check to someone else, it’s likely going to be easier to just put the check in your own bank account, wait for the money to clear, and then pay the other person.
Still, if you did want to endorse a check to someone else, these are the three types of endorsements you can do:
Special or full endorsement: If you want to give a check made out to you to somebody else, write “pay to the order of [the person’s name],” followed by your signature.
Conditional endorsement: This is where you write something on the check, like, “Payable to John Smith upon his renovating my kitchen for me.” Then, you give the check to John Smith to cash. But just because you can do something doesn’t mean you should, and that’s generally going to be the case with a conditional endorsement. Many bank tellers and managers will likely want you on hand to verify that you wrote this.
FBO endorsement: FBO stands for “for the benefit of.” Maybe you have a big check, and you want to give money to an organization on behalf of somebody. For example, you need to pay for your grandmother’s nursing home. You could write “FBO [name of the person]” followed by your signature. Assuming the bank accepts the check, now the nursing home would have their money and presumably use the funds for your grandmother’s care.
Read more: Can you deposit someone else’s check in your account?
The main thing to remember when endorsing a check
Endorsing a check should take you far less time than it did to read this article, but it is becoming a lost skill. So whether you’re new to writing checks or have written many in your day but are now fuzzy on the details, it’s understandable that you might want a quick reminder on how to do it.
Still, let’s not make this too hard. In most cases, if you sign your name on the back of a check, alerting the bank that this check is meant for you, and you then deposit it into your checking or savings account, that should be all you need to do to get your money.