Understanding how to endorse a check can seem a simple action, and most times, it is. However, in certain circumstances, extra care and attention must be given. Payee Information The payee on a check is the person or entity to whom the check is made payable-i.e., who is owed the money. The payee name should be spelled correctly for ease of cashing. If it is too badly misspelled or isn’t the correct name, return the check to the issuing party and request a new one with the correct information. Where to Endorse The check should have a designated area on the back of the check. It often includes a pre-printed statement or instructions, and a blank space followed a signature line. Most checks identify a portion of the check back beyond the signature line as a “do no write” area. That space is reserved for check processing documentation by the cashing and issuing institutions and should never be used by the payer or payee. How to Endorse If the check is presented at a counter, whether in a bank or a check-cashing business, wait to endorse the check until the counter reduces the risk of theft. In the payee endorsement [...]
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