How to sign over a check?

In the world of online transaction, writing a check has become outdated. The details of our credit-debit card have made it easier to send money over without even stepping out of our beds.

The check-signing has become more of a luxury than the need of industry. In the inception days of Banks, it was the only source of any kind of money-transaction.  Today several other sources including options for cards, e-wallets and Net-banking are in the market to establish this transaction that too in an easy and convenient way. Despite the incoming of diverse alternatives, writing a check properly is a must-know thing for every account holder.

Writing a check is a careful process. For the beginning, one must have a check-book issued by the bank in which the person holds an account.

STEP 1:  Put the correct date on the top-right of the check. The check will only be valid till next 3 months from the date of signing.

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STEP 2:  Draw to parallel lines on the top-left corner of the check diagonally and mention A/C PAYEE between those lines. This way money will be transacted directly from payer’s account to payee’s.

STEP 3: Write Payee’s name ( as spelt in the Bank itself) on the first blank given.

STEP 4: Mention the amount to be transferred in words and draw a line if there is any space left.

STEP 5: Mention the amount in numeric digits in the box given at the right side of the check.

STEP 6: Sign the check at the said space on the lower-right side. The signature should match with one that has been provided in the bank earlier by the customer or else the transaction will be denied.

In the world of online transaction, writing a check has become outdated. The details of our credit-debit card have made it easier to send money over without even stepping out of our beds

Endorsement Of A Check

Typically, writing a check isn’t enough to get cash out of account. The Payee needs to endorse the check to avoid any misunderstanding. Although several banks allow their customer to proceed without any endorsement of the check to maintain their privacy but mostly it is encouraged by banks for their customers to endorse the it. It is crucial for the payer to spell the payee’s name correctly or it can cause a lot of trouble to cash it.

The endorsement can be done in two ways depending upon how many parties are involved. If there are only two parties involved then the Payee has to sign at the back with the same spelling as mentioned by Payer in the front. Other information like Account numbers and name of the account holder is asked to be stated.

With the inclusion of the third party, the process becomes a little tangled and unreliable. Many banks do not encourage the endorsement by the third party as it can be fraud act also. To sign over a check to the third party one needs to write “Pay to the order of ….” With the name of new Payee.

Restrictive endorsement

This endorsement is the most secure way to ensure that the transaction has been done to your account only. For this, provision of the Account number is a necessity to which the money has to be transferred. Mention the account number on the back of the check along with the signature and state “For deposit only to (account number)”.

For dealing with checks can be a complicated task for few. But it is always wiser to seek for help. To resolve any confusion a customer can always knock on the door of Bank and ask for assistance. A bank has a right to negotiate on behalf of their customer if the procedure is not appropriate so by seeking help from them we are always helping them for their betterment too.

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