How to Endorse a Check: Where and When to Sign It

When you receive a check, you probably want to deposit it in your bank account immediately. But there is an essential step to doing this. You must endorse the check on the back of the check. Failure to do this could result in the check being rejected. But what does endorsement mean, and how do you endorse a check?

Signing or endorsing your name on the back of the check is a security step. It lets the bank or credit union know you are the proper recipient of the funds. By signing, you have verified your identity and let the financial institution know they can complete the transaction.

To endorse a check, you need to look at the front of the check and see to whom it's payable. The endorsement must match the payee. Once you've verified how the check is made out, you can sign it. Here are the steps to endorsing a check.

• turn the check over
• on the back of the check, there is a line that has an "X" on it
• sign your name exactly as it is written on the front of the check next to the "X"
• verify that the endorsement matches the name on the payable line

Now that you have endorsed the check, it can be deposited or cashed.

When you go into a bank branch to deposit a check, you will need a deposit slip and identification. You will need to endorse the back of the check.

If you want to make sure the check goes into your bank account, write "for deposit only" under your signature as well as your checking account or savings account number.

For a mobile app, you will still need to endorse the back of the check. Sign your name as it reads on the payable line. Your signature will go on the back of the check next to the "X." Then, under your signature, write the words "for mobile deposit."

Different circumstances will force you to endorse the check in a slightly different manner. Here are some FAQs regarding the various endorsements.

If you receive a check that you want to sign over to another individual, you can do that through a different endorsement. This will entail transferring the ownership of the check from you to the other individual.

To do this, sign your name on the back of the check as it reads in the payable line. Then write "pay to the order of" and the name of the individual under your name. For example, if you sign your check over to Jane Doe, you will write "pay to the order of Jane Doe" under your name. Once you do this, you no longer own the check. It now belongs to Jane Doe.

If the check has multiple payees, you will probably have to have all the payees sign the check. This is the case if the word "and" is between each payee's name. If the word "or" is between each payee's name, then only one payee needs to sign it.

If you forget to sign or endorse the back of the check, you risk the bank or credit union rejecting the deposit. In addition, because you didn't sign it, you haven't authorized the financial institution to complete the transaction.