If you have a checking account, you've probably dealt with depositing checks. In general, checks are meant for the person they are written out to. When you are the payee, you're the only person that can do anything with that check. However, sometimes you may find yourself in a situation where you need to endorse a check to someone else, or you need to deposit someone else's check into your account.
Different banks and credit unions have different rules, but many banks allow this under certain conditions. There may be a case in your life where a friend or family member asks you to deposit their check into your account. This could be because they are unable to deposit the check or because they want to transfer the money from the check directly with you. In general, many banks and credit unions allow this. However, you'll want to check with your financial institution before you initiate the process.
If you do not follow their specified rules, it can result in the check being voided. Call your bank and explain that you intend to deposit a check that has been made payable to someone else. Ask what you need to have them write on the back of the check, and be sure to ask if you both need to be present to deposit it. Some banks require a form of ID from the other person so that they can validate the identity of who is signing over the check. The exact process whereby someone endorses a check so that you can deposit it into your own account may vary from bank to bank or credit union to credit union.
Learning how to endorse a check is a basic part of financial literacy, so make sure you know how the system works. The Law Dictionary. National Check Fraud Center. Accessed Oct. Money Instructor. Santander Bank. Cornell Law School. News and World Report. Checking Accounts. Personal Finance.
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Different types of checks require different types of endorsement, but most involve signing the back of a check to prove that you are the legal owner of the funds it represents.
What Is a Blank Endorsement? What Is a Restrictive Endorsement? What Is a Third-Party Endorsement? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Related Articles. Banking Banking Partner Links. Related Terms Pay to Order Definition Pay to order refers to negotiable checks or drafts paid via an endorsement that identifies a person or organization the payer authorizes to receive money. Understanding Checks A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.
To avoid endorsing a check to someone that may not accept it, make sure you communicate beforehand. Given the risk of stolen checks or checks paid to the wrong person, some banks may not offer these services.
To make this process smooth, call or visit your bank first. Keep in mind you may need to contact the bank you initially received the check from. Now, how do you sign over a check to someone else? Start by flipping the check over to find the endorsement line. This shows the teller that you authorize this check to be paid to a third party. If you get worried, touch base with your recipient to ensure the check went through. If you or anyone else in the exchange feels uneasy, opt for a more secure alternative.
For instance, certified checks are authorized by banks for a more secure payment method and may be a better payment alternative, especially for large purchases. Paying bills with checks you already have may save you time, but not always for the recipient.
You could simply go to the bank and cash out your check.
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