Blank, restrictive, and special check endorsements are the three categories of check endorsements. For depositing or cashing the check, each sort of endorsement has its own set of rules.
The most common type of endorsement is a blank endorsement, which is signed by the payee and presented to the bank for cash or deposit. Instead of the payee signing his name, a restriction endorsement is made by putting “For deposit only” in the endorsement area. This form of endorsement can only be put into the payee’s financial institution account.
When the payee wishes to sign a check over to another individual, a special endorsement is used. The payee signs his name and then writes “Pay to the order of (new person’s first and last name).” After signing his name in the endorsement area, the new payee cashes or deposits the check.
