3. Checking accounts - How to endorse your check How Do You Endorse a Check? The process of writing on the back of a check to legally transfer its ownership, usually in return for the cash amount indicated on the face of the check, is called endorsing the check. Endorsements can vary from merely writing your name to including other special phrases that will alter how the check can be handled and by whom. It is important that you endorse a check in a manner that protects you from having someone cash your check against your wishes. What are the differences between a blank endorsement, a restrictive endorsement, and a special endorsement? Consider each of the following statements and indicate whether it refers to a blank endorsement, a special endorsement, or a restrictive endorsement. Blank Endorsement This endorsement authorizes the financial institution to deposit the check only-not cash it. Uses the phrase "Pay to the order of [name]" along with the payee's signature. When endorsed in this manner, the check becomes a bearer instrument. Restrictive Endorsement Special Endorsement Why is the method used to endorse a check important? Asked differently, why should you care about how you endorse a check? To answer this question, think about the advice you would give to a friend who was endorsing a check in the manner described. Tamara "Wow, my grandmother really came through this year! Look at the great check she sent me! I've got to get this into my bank account, but the bank closes in two hours, and I'm having a big party at my house tonight. What do you think I should do?" What advice would you give Tamara? Go to the bank now to deposit the check, and sign it using a restrictive endorsement when you get there. Endorse the check now with a blank endorsement. You can take it to the bank tomorrow. Sign your name on the back of the check so that nobody else can take the check to the bank. Don't worry about getting the check to the bank right away. As long as it is not endorsed, it can't be cashed.