When you use a restrictive endorsement on your check, it means you cannot pass it to a third-party for deposit. You may choose to restrict the endorsement by writing "For Deposit Only" on the back. Place the check on a flat surface and turn it over, so the “endorse check here” side is visible. In order to get business checks you need to open a bank account for your business. Add a restriction, such as "for deposit only," followed by your business account number. Proper endorsement can help protect you from fraud and, at the very least, it allows you to avoid delays at the bank window. For instance, if you write a check to "John Doe," John Doe must be the one to endorse the check. The size is primarily to make it easy for companies to print them right in the office using special software and paper. Underneath the line where you sign the … There are different restrictive endorsements, but they all serve the same purpose of preventing stolen deposits. A restrictive endorsement reduces your risk by limiting what happens to the funds after you endorse the check. While her career enables her to explore variety of topics, FinTech is one industry that she is personally passionate about. Sign your name on the third line as it appears on the front of the check to complete the special endorsement to a third party. Put your signature on the back of the check on the top endorsement line. What Does It Mean for a Check to Be Indorsed ‘For Deposit Only’? Sign your name below the business name. If a check is made payable to a business, then an authorized person must endorse the check on behalf of the business. Ask your bank about any specifications before ordering a stamp. The issuer should only sign the front of the check, but they may leave instructions on the back of the check. She has been an investor, an entrepreneur and an adviser for 25 + years in the US and MENA. Because of increasing banking and identification security regulations in the United States, you will likely have difficulty finding a bank that will accept a third-party check. It may be indicated as such but is not necessary. When she takes on projects for clients like CheckDeposit.io, she's able to weave that first-hand knowledge into the piece, making for more interesting and informative writing. Sign the name of the business as it appears on the pay-to line. However, banks aren’t supposed to deposit those business checks to your personal account unless you sign the check over, which is also unlikely to be approved. This … This enables the third party to be the only person legally able to sign the check, according to the website of financial services company Citibank. Here's How It Works. Instead of just signing your name on the back of the check as you would when chasing the check yourself, you’ll need to include information about the person to whom you’re signing it over. Endorsing Business Checks A business check is endorsed using the legal name of the company and the signature of a representative such as the business owner or treasurer. As a business owner, you want to make it as easy as possible for customers to pay you. Likewise, if a third party with endorse the money, choose the correct special or conditional endorsement accordingly. Some banks reserve the right to return checks with special endorsements unpaid or may require you to appear at the bank to verify your endorsement … Realize that it is up to the bank's discretion to cash a check with a mistake on it. How to Sign/Endorse a Check Over to Someone Else. ), Adding any restrictions to the check that you require. If you're unsure how you should do it, look at these common mistakes and the simple steps you have to follow. Businesses may have multiple owners and require the approval of several people to withdraw or spend money. To make business checks online, you have to have a font writing and booking software. Business checks are used for businesses to pay your employees. To endorse the check, go to the endorsement area on the back of the check. Online check printers and office supply stores can create a stamp with all the required information, allowing you to fly through endorsements. The easiest way to distinguish between personal and business checks is the size. The only person who can endorse a check for deposit is the payee listed on the front of the check. Once you turn your check over, place it so it faces up, like this: You will sign the check underneath, where the check says "ENDORSE CHECK HERE", or a similar phrase.