Weird But True:
If you don't understand check "endorsements," you're going to get in trouble with checks!
An endorsement is what you tell the bank to do with a check you receive from someone else. For instance, you have to endorse your paycheck to cash it.
The endorsement is simply your signature on the back of a check you receive from someone else, plus any other instructions you give the bank concerning your check.
Listen to that one more time: an endorsement has to do with a check you receive from someone else.
- For instance, you get your paycheck. What should the bank do with it?
- Or a friend pays you by check for buying your old computer. What should the bank do with the check?
You always write your endorsement on the back of a check.