Question

When does one endorse a check? Why do you think?

Answer 1

You endorse a check when you (the payee) intend to negotiate it — i.e., to transfer it, cash it, or deposit it. Practically that means you sign the back of the check before (or at the time you) present it to a bank or hand it to another person.

Why:
- An endorsement is the payee’s signature that transfers the right to payment (creates a negotiable instrument or passes it to an endorsee).
- Banks normally require a signature to accept, collect, or credit the funds and to rely on the warranties an endorser gives (e.g., endorsement is genuine).
- Endorsements create the chain of title and help protect parties; restrictive endorsements (e.g., “For deposit only”) limit how the check can be used.
- Legal/technical points: a check payable to “A or B” can be endorsed by either; payable to “A and B” generally requires both. Mobile/ATM deposits sometimes accept alternative, but signing is still customary and recommended.

In short: sign when you intend to negotiate or present the check so the bank or transferee can legally and practically collect the funds.