Endorsing a check means signing the back of it to indicate that you are the payee and that you are ready to accept your money. When someone pays you with a check, you typically have to sign the back of it before you can deposit it in your account. Endorsing a check allows your bank and you, or a third-party, to settle the funds associated with the check. The endorsement is necessary for the issuing bank or financial institution to transfer the funds associated with the check in most cases.

Here are the general steps to endorsing most checks:

• Wait until you’re ready to deposit or cash the check.
• Turn the check over so you’re looking at the back.
• Look for a box near the top that says “Endorse Here.”
• Sign your name on the top line. This is called a “blank endorsement.”

Different types of checks require different types of endorsements, but most involve signing a checks back to prove that youre the legal owner of the funds it represents. There are several ways to endorse a check, and how you endorse a check depends on what you want done with the money and how the check needs to be filled out.

Its important to make sure all the information is correct before endorsing a check. The name in the endorsement must match the payee (“Pay to the Order Of…”) name on the front of the check. If someone gives you a check and they’ve spelled your name incorrectly, endorse the back of the check with the incorrect spelling, and then sign your name with the correct spelling on the back of the check.

If a check is made out to multiple people, look for “and” or “or” in the pay-to line. If the check is made out to “John and Jane Smith,” then John and Jane must both endorse the check. If the check is made out to “John or Jane Smith,” then John OR Jane can endorse the check.

Endorsing a check is a relatively simple process and it significantly improves your banking security. Different types of deposits can require different types of endorsements.