What is ‘the Endorser’
The endorser is the person authorized to sign a negotiable security in order to transfer property rights from one party to another or to Approve the terms of the contract. By endorsing the check before cashing it or storage is the most common and widely known example, but an endorser is also required to perform operations such as transferring a car title or trading a financial security.
Breaking Down The ‘Endorser’
Most people endorse a check to cash it, Deposit it or sign it over to someone else. Signature is usually required on the back of the check or financial instrument. Incorrectly endorsing checks may result in the Bank returning the cheque Issuer.
Best practices for the Transferor
To correctly endorse the cheque, the name signed on the reverse side of the cheque must match the name of the recipient written on the front side of the check. If the recipient’s name was misspelled or incorrectly written, signed, incorrect version, and then sign in again using the correct name. Most checks have a small section for you to write in, known as the support zone. Try to keep all of your signature and any other instructions in this area.
The easiest way to approve (but most dangerous) is to simply write a check without adding any restrictions. To use this method, known as a blank endorsement sign your name in approval. But only do this if you intend to pay by cheque or cash it. For example, a blank endorsement may make sense if you’re in the lobby of the Bank or remote Deposit at home.
If You send us by mail a check Deposit through the ATM, or wear it for a while, to use a different method: either leave the check unsigned until you are ready to make or add a restriction on the approval. Do it because that blank endorsements are risky because someone may steal endorsed the check and cash it or Deposit to another account.
Restrictive endorsement ensures that the check gets deposited in a specific account. To do this, specify your account number with your approval, and provide instructions say that the money will only be credited to your account.
The recipient can also write a check to someone else, effectively paying the man with the cheque you received. To do this, write “pay to the order of…” and the name of the new recipient. Remember that some banks do not allow such claims, because the technique is sometimes used for fraudulent purposes.
You don’t have to endorse the check. Some banks allow you to Deposit checks without a signature, account number, or something on the back.
You can also skip the approval. Without approval, no one can see your signature or your account number if your Bank adds the account number when processing.