If you are a business owner, you will notice that customers issue checks sometimes after purchasing an item. Once this happens, the business will have to endorse the check before depositing it into the bank.
Knowing how to endorse a check to someone or a third party will go a long way towards helping your business.
You may know how to deposit a check that someone issues to you, similarly, a business check is not different. Endorsing a business check depends on what you intend to do with it and how a customer wrote the check.
By endorsing a check, it will give your bank, yourself, or a third party the opportunity to reconcile any money that is contained in the check.
In this article, you will learn how to endorse a business check and how to endorse a check to someone else/third party. You will also get to know how to endorse a check for a mobile deposit and sign over a check.
How do I endorse a check?
You can endorse a check using different ways. The method you will use to endorse it depends on what you wish to do with the money and how the check is filled.
Ensure that you wait for sometime before you endorse the check. Once you get to the bank, endorse the check before you join the queue.
Bear in mind that if you misplace the check after endorsing it, anyone that picks it up may alter its endorsement.
In endorsing the check, you will have to sign at the back of the check. Before you endorse, turn to the back of the check and you will see a box written: “endorse here”.
You will also see a line that reads: “Do not write, stamp, or sign below this line”.
If you are endorsing a check for a deposit, you will have to use a restrictive endorsement. This restrictive endorsement involves the following:
This restrictive endorsement instructs the bank to honor the account number on the check. We advise that you use this method even if you are taking the check to the bank by yourself or someone will do that on your behalf.
You should also note that the person who issues the check may see a copy of the written check through their bank. If you don’t want another person to see your account number, simply write on the check; “For Deposit Only”; afterward, you sign the check.
NOTE: While processing the check, most banks usually print the account number of the issuer at the back of the check.
How to endorse a check to someone else/third party
Whenever someone pays you with a check and you wish to pay someone else (third party) that you are owing using the same check, you must have to endorse it first.
You can endorse this check for a third party by writing:
This process is not usually advised, although, you can do it. The reason is that there is usually fraud in most third party checks and some banks do not accept it for safety reasons.
If you happen to be the third party, make sure that you confirm from the check issuer’s bank and the last payee’s bank so that the two banks will honor the check.
In order to avoid any problems that may arise, we advise that you deposit the check issued to you and write a new check for the third party.
Endorsing a check for a mobile deposit
Mobile check deposit enables you to deposit a check from anywhere using your mobile device. New regulations by banks stipulate that any check that you wish to deposit via mobile service must have:
- For Mobile Deposit Only” handwritten under your signature in the endorsement area on the back of the check. Failure to do this, the bank will not honor the check.
Below is how you can deposit a check using your mobile banking app:
Tips! You may like to know the mobile deposit procedure on citizens bank.
How to endorse a business check
Whenever a customer makes payment to a business via a check, an authorized staff in that business will have to endorse the check on behalf of that business.
For you to endorse this business check, you will have to turn to the back of the check. At the back of the check, you will see a section at the top written “Endorse Here“, use a pen and endorse it.
Below is the process you must follow to endorse a business check:
In a situation whereby you accept many checks for endorsement, you can use a stamp to endorse it. The stamp can be produced with all the necessary information by any office stationery supply store.
With the stamp, you will be able to endorse several checks within a short period of time. Make sure you verify from your bank so as to obtain the requirements before placing an order for a stamp.
Signing over a check
Signing over a check otherwise known as blank endorsement for a check, is the least secure way of endorsing a check. This involves signing your name at the back of the check, presenting it to the teller to credit or deposit the check.
On the other hand, you can do blank endorsement whenever you want to deposit a check via an ATM or via mobile deposit.
Always have in mind to sign the check before you deposit whenever you’re doing blank endorsement.