Endorsing checks look so easy, but even people who has done it several times may find some hiccups along the way. Learn how you can endorse checks properly and the important things you must bear in mind.

How good are you in terms of endorsing checks when check cashing or depositing checks to your bank account? Having your own checks or being paid in checks, check endorsement should be easy-peasy. Well, this is not so true for many. There are people who struggle to encash their checks or even deposit them to their own bank accounts, simply because their endorsement was not valid or look fraudulent.

But Wait… What is Check Endorsement?

Before we tackle more on how to endorse checks properly, let’s get to know what endorsement really is. Check endorsement, in the simplest way to explain it, is the signature of the remitter that settles the transaction the way he wants to on the check. There are always two parties involved in check endorsement: the remitter and the payee.

The remitter determines the amount and “endorses” the checks to the payee. The payee is simply the person getting paid with the check. Without the endorsement of the remitter, there is no way the payee can use the check for cashing or depositing it on his account. Remitters will put the important details, such as the date the check can be used, the amount and, of course, the signature.

Endorsement allows financial establishments to determine whether they are dealing with people who stole checks or placed fraudulent information on the checks. There are also additional measures the financial institutions use, especially for checks with considerably high amount.

How Do I endorse Checks?

There are three ways to endorse a check, and each one needs some information on the check to be considered.

• Restrictive Endorsement

If you own checks and you want to specifically deposit the check to your account or to a payee’s account, this type of endorsement is best. Restrictive endorsements usually have the same name of the payee and remitter and is deposited directly to the payee’s bank account. And if endorsed to another payee, the words “For Deposit Only” should be written at the bank of the check. This will not allow the payee to encash the check and will have to wait until the bank clears the check deposited in their accounts.

• Special Endorsement

If the payee wants to endorse the check to another person or business and the words “For Deposit Only” is not written on the check, then it is considered a special endorsement. This allows the payee to deposit or do check cashing. Usually, the payee endorses the checks with the words “Pay to the order of” and the Full name of the other person or business.

Special endorsement is a common way for people to use their check payments without the wait. However, there are some risks with this type of endorsement. Check cashers created their ways to confirm the authenticity of the endorsement of the checks.

• Blank Endorsement

Endorsements are supposed to make the check transactions safe, right? But here comes blank endorsement- a type of check endorsement that does not have a restriction. Does. Not. Have. A. Restriction. Yes, you read that right.

Blank endorsements only have the signature or endorsement of the remitter and no other instructions. Checks with blank endorsement can be deposited and/or encashed. This type of endorsement can be risky, and financial institutions will have to ask you some important questions or ask you to go through important processes.

So how do you like your checks endorsed? If you are looking for safety and still get your check cashed instead of deposited to your account, then a special endorsement is great. Though blank endorsement looks easier to use, it may be hard to encash especially if the check seems to bear fraudulent information. But whatever the type of endorsement you choose, make sure you check all information before getting your check so you won’t have to get stunned in how you can use it.