How to properly endorse a check
June 4, 2020
In order for a check to be negotiated (i.e. deposited into your Credit Union account or cashed), it must be properly endorsed, or signed, on the back.
To make sure that you properly endorse the check, you must first review the “Pay to the Order of” line on the front of the check.
If the check lists a single individual or entity, then, in most cases, only this individual or entity must endorse it.
For example, on the “Pay to the Order of” line, the check is made payable to John Smith. In this case, John Smith must endorse the check to deposit it into his account or cash it.
If the check is made payable to two or more individuals or entities, then, in most cases, every person or entity must sign it.
If the check is made payable to Sally Jones and Robert Jones on the “Pay to the Order of” line, then both Sally Jones and Robert Jones must sign the check to negotiate it.
If the check is made payable to an individual (i.e. Sally Jones) and an entity (i.e. ABC Institution) on the “Pay to the Order of” line, then both the individual and a representative from the entity must endorse the check to negotiate it. You, the member, should contact the entity to determine the process for endorsement of the check.
For those who like to get into the nitty gritty of details regarding endorsement scenarios, and how the Credit Union will accept checks, please see the details below for those cases-
AND/OR CHECKS
-If a check is made payable to two or more parties and the word “OR” separates the names, then only one signature would be required.
-If a check is made payable to two or more parties and the word “AND” separates the names of the payees, then all payees must endorse the check.
-If a check is made payable to two or more parties and the words “AND/OR” separates the names, then the Credit Union will assume “AND” separates the names and requires all payees listed to endorse the check.
-If a check is made payable to two or more parties and the names are not separated by any words (i.e. and/or), then the Credit Union will assume “AND” separates the names and requires all payees listed to endorse the check.
-If it is ambiguous (unclear), then it is considered an "AND" check.
-Always take extra care with government checks and insurance drafts. All parties MUST endorse as the check is made payable; otherwise, the check will be returned in most cases.