On the subject of how to endorse a check, the endorsement portion refers to authenticating the check so that it can be cashed at a bank or an ATM machine, or given to another person for this purpose. Although the method used for endorsing is quite simple,
Endorsement is much like granting permission for a check to be used in any fashion, but the most common use that requires this practice is depositing the amount made out on it into one account from the account of the owner. Without being endorsed, no transaction can be made with this payment method.
How to Endorse a Check: Steps to Take
The first step is simply to flip the check over and look at the back of it. Search around until you see a line for signing it, which may or may not give you instruction on the process. This line-signing is similar to what you might find in a celebrity endorsement letter – but note that these types are completely different and unrelated from one another. One of them is granting permission, while the other is an influential figure giving praise of a product or a service. The same process applies for writing a general sample endorsement letter.
When you have found the line on the document, sign your name there. It is technically at this point that this payment method has been officially endorsed by its owner, and no further involvement is necessary. There are, however, certain steps and precautions that need to be taken during the process of endorsing, so that all bases are covered to and from the point of transaction with the check and its funds. Skipping these steps is obviously not recommended.
Consider what it will be used for. If it is used for deposits, clarify on the back of the check that it is to be used as such. For example, write “only for deposit” somewhere. You can also include an account number that will be receiving the deposited funds so to further avoid fraudulence. You may see various lines on the check. Write “pay in the amount of” and the amount written on it. The receiver of the deposit should be printed below this. Here is where your signature is placed, and the payment method is endorsed. Encourage the receiver to also sign his or her name.