Types of Bank Check Endorsements

A check endorsement refers to how the back of a check is written upon by the person who received the check. Checks can be endorsed in many ways.

Blank Endorsement

A blank endorsement is when the recipient of the check signs his name on the back of the check. Once the check is signed, it can be used in a similar manner to cash.

Restrictive Endorsement

A restrictive endorsement specifies the way in which a check can be negotiated. The most common form of restrictive endorsement is "For Deposit Only," which renders a check unable to be cashed.

Conditional Endorsement

The endorser uses a conditional endorsement to specify a condition that must be met before the check can be cashed, such as "Payable to Bob Smith after the lawn is mowed." Institutions typically won't accept conditionally endorsed checks because they have no way of verifying if the condition has been met.

Special Endorsement

The person receiving the check uses a special endorsement to turn over the funds to another person by writing something like "Pay to the Order of Jane Doe, Signed John Doe."

Qualified Endorsement

The person negotiating the check uses a qualified endorsement to attempt to remove any responsibility for the check being returned for insufficient funds by writing "without recourse" after her signature. Banks do not accept this type of endorsement because depositors are always financially responsible for insufficient deposits.

References

• Types of Check Endorsements