How to Properly Endorse Checks

Endorsing a check might seem like a small detail, but it’s an important step in ensuring your ATM deposits go smoothly. Whether you’re dealing with a simple one-payee check or a more complicated scenario involving multiple parties, knowing how to endorse your check properly can save you time and hassle.

In this guide, we’ll cover the essential steps you need to take when endorsing checks for ATM deposits, helping you avoid common mistakes that could delay your funds.

The Basics

Endorsing a check means signing the back of it to confirm that you’re the person entitled to the funds. This signature acts as your authorization for the bank to process the check and deposit the money into your account. However, there are specific rules and guidelines you need to follow to ensure the deposit goes through without any issues.

• Endorsing a Check with One Payee. If the check is made out to you alone, the process is pretty straightforward. Simply flip the check over and sign your name on the back exactly as it appears on the front. Make sure to keep your signature within the designated 1.5-inch space provided on the back of the check. This helps make sure that your endorsement is clear and accepted without any complications.
• Handling Checks with Multiple Payees. When a check is made out to more than one person, the endorsement process becomes a bit more complex. There are two common scenarios:
  • Two Payees Listed with “And." Suppose the check is made out to “John and Jane Member,” both John and Jane must sign the back of the check. Their signatures confirm that both parties agree to the deposit.
  • Two Payees Listed with “Or." If the check is made out to “John or Jane Member,” only one signature is required. Either John or Jane can endorse the check and deposit it into their account.

Special Endorsement Cases

Insurance checks and bill consolidation checks often require special handling. These checks are typically made payable to both an individual and a business. To deposit such a check, you must obtain signatures from all parties listed:

• Insurance checks. For example, if the check is made out to “John Member and ABC Body Shop,” John must sign the check and also obtain an endorsement from the business (ABC Body Shop) before it can be deposited.
• Bill consolidation checks. Similarly, if the check is made out to “John Member and ABC Co.,” both John and the business must endorse the check.

Other Scenarios

• Traveler’s checks. Before depositing a traveler’s check, it must be signed and countersigned on the designated signature lines.
• Money orders. These need to be signed on the “Purchaser’s Signature” line before deposit.

Avoid Common Deposit Errors

It’s important to follow specific guidelines when endorsing checks to avoid any deposit issues. Here are some tips:

• Correct use of ink. Always use blue or black ink to endorse your check. Avoid using gel bens, as they can smudge.
• Proper endorsement. Make sure your check is properly endorsed, or it may be returned to you. The signature of the payee is required.
• Avoid alterations. Do not alter your deposit slip or write notes on it, as this could delay your deposit.
• Timing for stale-dated checks. Deposit checks with expiration dates like “Void after 90 days” at least two weeks before they expire to allow time for processing.

What to Do if a Deposit Error Occurs

Occasionally, deposit errors can happen, and adjustments may be necessary. For example, if the total amount you enter at the ATM doesn’t match the sum of the deposit items or if any checks are missing proper endorsements, the funds could temporarily be removed from your account until the issue is resolved. Additionally, depositing checks drawn on foreign institutions or altered checks can lead to further complications.

It's important to note that like many financial institutions, PSECU reserves the right to reject checks or other items payable to someone other than the account owner. Following these guidelines can help ensure your deposit is processed without any hitches.

Making Deposits a Breeze

Check endorsements may seem like a minor step, but they’re essential to making sure your ATM deposits are processed smoothly. By following the guidelines for different types of checks and avoiding those common mistakes, you can prevent delays and have peace of mind knowing your funds will be available when you need them.

For more detailed information on deposit policies and funds availability, visit PSECU’s Funds Availability Policy at psecu.com/disclosures.