Question about endorsing a check

[lunamagica]

I'm not sure how this works.

Say I have a check written to me. I endorse it.

Does that mean that anyone can cash it or deposit it in their account?

[CaliforniaPeggy]

1. Yes, it does mean that.

It's best to endorse the check right before you deposit it or cash it.

Right Before.

Once you endorse it, anyone can cash it.

[lunamagica]

14. Thank you, California Peggy.

Good advice on signing it just before cashing it, and will do it from now on.

[hunter]

25. You can also write "For Deposit Only" along with an account number.

That way nobody can cash the check even if you lose it, it gets stolen, or if you'd like someone else to deposit it in your bank account.

Unfortunately banks are getting notoriously lax about these details lately. I guess they figure it's cheaper to deal with the aftermath of any fraudulent activity rather than examine every single checking transaction for problems before they run the check through the scanner.

Checks are treated a lot like credit cards now. If the machine accepts it, it's all good. If not, the cashier hands the check or card back to you.

[elleng]

2. Yes,

once it's endorsed, it's essentially 'legal tender,' or 'cash.'

'The most common type of endorsement is a when the payee signs the back of the check and then presents it for cash or deposit. This is called a blank endorsement. Ironic, I know. It is considered “blank” because there are no additional instructions or limitations; the check can be deposited or cashed.

Instead of signing your name on the endorsement line, another option is to write “For deposit only” on the back of the check. This is called a restrictive endorsement because it is declaring the check limited to deposits, meaning it can not be cashed. You may choose to present the check for deposit without providing an endorsement of your own. In this case, the depositing bank may mark the check with a stamp. Verbiage will vary, but will read along the lines of, “Pay to the account credited within Name of Bank.” This is similar to the payee writing “For deposit only” and is considered a restrictive endorsement.

A special endorsement is used when the payee wants to give their check to a person not named by the remitter. The payee must first endorse the check and then write, “Pay to the order of First Last name.” The new payee then endorses the check and presents it for payment. Due to the risks involved with cashing such checks, it is up to the financial institution’s discretion whether or not to accept the check, and how to do so.'

http://myfinancialwingman.com/2011/05/banking-basics-101-check-endorsements/

[csziggy]

5. For my business account I had a "For deposit only" stamp

That also has the bank name and the account number on it. Now I have one for my personal account, too. That way no one can cash or deposit any checks to me into another account.

[elleng]

6. Smart.

[csziggy]

10. It makes me feel safer

Especially since my husband often takes the deposits into town - and he's been know to misplace checks. Recently I was given a sizable check, stamped it and gave it to him to take by the bank. He stuck it into a book he was reading and forgot to deposit it. When I realized it hadn't made it to the bank, I didn't have to worry it was stolen - I just had to help him remember which book he was reading at the time I'd given him the check, LOL!

[elleng]

11. WHEW!

DOUBLE smart!

[magical thyme]

22. phew! the dangers of books and reading are vastly underestimated!

Thanks for the reminder

[lunamagica]

16. Thank you Elleng

For such thorough explanation

[elleng]

17. You're welcome, lunamagica.

Fortunately found a decently clear explanation, and felt obligated to share it.

[Tuesday Afternoon]

3. Don't they have to sign their name below yours on the back before they can cash it?

[The Velveteen Ocelot]

4. Only if there's a special endorsement -

that is, the original payee endorses the check over to somebody else with the words "Pay to the order of (XYZ)." Then the second payee would also have to sign it. If it's just an endorsed check it's pretty much the same as cash, which is why you shouldn't endorse a check until you are actually standing in the bank lobby.

[Tuesday Afternoon]

7. all my checks say: Pay to the order of. Don't all checks say it?

[The Velveteen Ocelot]

8. That's what you'd write on the back if you wanted to sign a check written to you

over to someone else. You'd sign it on the back and then write "Pay to the order of X." That's a special endorsement, and X would also have to sign under your endorsement.

[Tuesday Afternoon]

9. yes, I understand that but, for some reason I am thinking that if someone wants to cash a check

and their name is not on the front and the back of the check IS signed w/out the For Deposit Only ... whomever is handing the check over also has to sign underneath the other signature.

Been a long time since I have had this scenario so, I fully admit I could be misremembering.

Maybe, times have changed and does not have to be that way now.

Seems like I have had to do that ... a long time ago.

[The Velveteen Ocelot]

12. A check with a blank endorsement does not have to be signed.

Never has. That's why this is risky and why you should never endorse a check until you are immediately going to hand it to a bank teller for deposit or cash. http://banking.about.com/od/checkingaccounts/a/blank_endorsement_check.htm

[Tuesday Afternoon]

13. oh wait .... derp. You are speaking about the Front of the Check being a blank line, right?

I am thinking about the frontline is filled out to So & So and So & So has already signed on back and then turned the check over to This & That .... then This & That has to sign on back below where So & So has already signed.


Two different scenarios.

I think what you are talking about is a signed blank check (least ways that is what I have always called them)

[The Velveteen Ocelot]

15. No, I'm talking about the back of the check.

Let's say Joe Smith has made a check payable to you, Tuesday Afternoon. You want to cash the check at your bank, so you turn it over and endorse it by signing your name. On your way to the bank you are mugged, and the thief steals the check. Since you've endorsed the check on the back, the thief can take it to a bank and cash it without also signing it, which is why you don't want to endorse a check until you are about to cash it. That's not a blank check; it's a blank endorsement.

[Tuesday Afternoon]

18. I thought that was what you are talking about but, I have never seen that. Granted it has been

a long time since I have had that scenario but, iirc correctly the thief (in your example) would have to sign below my name on the back. Granted he would probably not give his right name but, still ... I am not familiar with Not having to sign below. It just *sounds* like bad business to me.

interesting.

thanks.

[The Velveteen Ocelot]

19. No. Again - the thief would NOT have to sign the check. That's why it's called

a blank endorsement and why it's risky to endorse a check unless you're ready to deposit or cash it.

[Tuesday Afternoon]

20. yes, and I am saying that you are right BUT, that is not anything -I- have EVER seen

and I am admitting that I could be remembering WRONG ... but, from what -I- remember given your example someone. anyone. whomever took that check in to be cashed would have to endorse below my name regardless.

Maybe I was on acid or something.

or maybe different banks/states have different policies or maybe the policy has changed over the years.

Most people use debit/credit cards now days.

I still write checks and snail mail them to pay my bills but, my paycheck is direct deposit so, I haven't had a check written to me in a Very Long Time. Much less had to then pass it on to a third party.

Isn't that what this would be: a third party check
meh.



I would NEVER endorse a check until I was ready to cash it anyway.

and I *wish* someone would write me a check ... about 200K and I would be good to go

[DebJ]

21. Legally, the bank can CHOOSE to 'supply the endorsement' for a check

that has been deposited into an account with the same name as the name of the payee.

I do this all the time at our credit union, to deposit checks made out to my husband. The account is in his name.

But the bank is not OBLIGATED to do so; they can refuse to take a check that is not endorsed.

[magical thyme]

23. I always endorse standing at the bank counter with the teller right there

so I can pass it directly to the teller for cashing or deposit.

[Callmecrazy]

24. Y'all still use checks?

The top check number in my book says 035. I've had the account for nine years. I do all my banking electronically and have my payroll checks go in through direct deposit. I think if I tried to write a check I would screw it up.