If someone passes you a check, you must have to endorse it before you can deposit it in the bank account or cash it out. Once you endorse the check, you should understand that you grant a legal right to the bank, and it will usually take some time for the money to get deposited into your account. It is convenient to sign the check with your name only, also don’t forget to add restrictions for how the bank should process the check, or sign the check to endorse it to someone else. Here is the complete checklist to Endorse A Check.
- Verify the information: Before endorsing the check, it is vital to make sure that you are filling up the information correctly, so the bank can accept it. By chance, if the person who has given you the check has written the wrong spelling of your name, you must give it back and ask for a new check with the right spelling to avoid complications. Some banks might accept the check that has been changed, but many banks get suspicious of this, so it is recommended to ask for a different check. The check’s authenticity is marked by a line at the bottom with the routing number and account number. If the line is not there, the bank will not accept the check at any cost.
- WhoCan Endorse: If your name is mentioned on the payee line of the check, the signature is all that is needed to cash or submit the check. If someone’s else name is also mentioned there, they need to sign it. If someone else name is also present over the check with the word “and” or the symbol “&” shows up between the two names. The default is that a check that is with 2 or more names could be cashed or deposited individually by any of the people that are listed in the check. It is not allowed to deposit the check without the signature. However, if you have a joint account, they must be able to deposit the check in the account on your behalf without a signature.
- See the Gray Lines On The Back Of The Check: If you turn the check, you will see 3 to 5 gray lines. That typically shows up on the upper short side of the check. There is also a solid line with instructions not to write below the line. The bank has to keep the remaining blank space under the endorsement area to document the processing of the check. Ensure that the signature must not go over the extended space, or the bank might refuse the check.
- Sign the Name On The Gray Lines:If you want to endorse the name, you have to use a pen with blue or black ink to sign. In case your name is not the same as it is on the government-issued photo id or the bank account, you might require to print the correct spelling of your name under your surname. If you are signing a business check, that includes the business’s name on the line above your name. You also might need to show the job title to prove that you are authorized to cash or deposit the check in the name of the company.
- Cashor Deposit The Check Immediately: Once the check is signed, it means anyone can cash it. So, it is highly recommended not to sign the check until you reach your bank. If you don’t have an account with that bank, you need to show up the government-issued photo ID as proof.
These are several points that must be done carefully to successfully endorse the check and to ensure the safety of the transaction.