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When you receive a check, you need to deposit it or cash it out. A signature on the back of the check is all it takes to endorse it but for the safety of your money, some additional steps are necessary.

Endorsing– Signing on the back of the check in the same name as payee name is called endorsing. You need to sign your check in your name. On the back of the check, there is a box in which you have to put your signature and other details depending on the type of endorsement.

There are three types of endorsement- blank endorsement, restrictive endorsement, and signing the check over to someone else.

In the blank endorsement, all you have to do is sign your name before depositing it. It is the least safe type in case the check gets stolen. In the restrictive endorsement, the account number in which it has to be deposited is written along with the sign making it difficult for thieves. In case, you want to pay somebody with the check you have, you can sign it over to them by naming the new payee.

The endorsement is not always necessary. You can deposit the check without any endorsement as well. It is advised here to sign your check right before depositing to save yourself from fraud.

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