Endorsed Check: what is it and how to endorse a check?

An endorsement is a process in which the payee transfers ownership and credit rights to a check to a third party, identifying the action on the document itself.

To endorse a check, you must sign on the back and indicate the name of the new beneficiary you will have with the process.

How to endorse a check

To endorse a check, it is only necessary for the beneficiary of the check to sign on the back of the check, with the possibility of indicating who should be the new beneficiary of the guarantee.

Check approval can happen in two ways:

Blank endorsement  : when the payee only signs on the back of the check;

Black Endorsement  – ​​When the payee signs and also writes the name of the new payee the check is intended for.

It is also possible to write in the signature the expression “for deposit only”, which indicates that the new owner of the check can only deposit it in a bank account.

The endorsement can be avoided by issuing the check by striking out the phrase “order”, writing next to “do not order”, as well as “endorsement prohibited”, “transferable” or other equivalent.