Endorse check: What is it, what is it for and how to do it?

Checks are still widely used in Brazil for making payments, whether for companies or individuals. Although other methods are used, there are still questions about checks, how to fill them out, and, most importantly, how to endorse them.

That's why we've put together practical information to help you understand everything about check endorsement, including what it is and how to do it safely so you don't have any problems when paying and depositing.

Follow the article and see everything you need to know.

What is endorsing a check?

Simply put, endorsing a check is an operation in which the holder of a check transfers ownership and credit rights to a third party, through the indication made on the document itself.

In other words, you transfer the right to receive the check amount to another person, so that they become the owner of that title and your name is indicated as the person who made the transfer of ownership.

To carry out this transaction, you must sign the back of the check and identify the name of the new beneficiary, who will assume rights to the title.

Please note that all checks made payable to order can be endorsed, meaning they can be transferred. Only checks issued and clearly marked as not made payable to order cannot be endorsed.

Why endorse a check?

Check endorsement occurs when you receive a check and want to pay it at another establishment. In other words, you're not cashing the check, but transferring the title to someone else.

At this point, you need to indicate that you are transferring the check to someone else by signing it and adding your CPF number on the back. This indicates that you used a third-party check that you received, and that, in the event of a problem, you will be charged.

So, whenever you need or want to use this title to make payment elsewhere, you need to endorse the check.

How to endorse a check?

The check endorsement process is simple and must be done when transferring the check to another entity or individual.

• Please check that the check you received was filled out correctly.
• Check the details of the person or entity receiving the check.
• On the back of the document, fill in your name, CPF, date, payment amount and sign.
• Hand over the endorsed check to make payment.

Done. Now the title is in the other person's possession, and they will go to the bank to deposit that document.

It is also worth remembering that there are two types of check endorsement:

Endorsement in black

A check endorsed in black is one that clearly indicates who will receive the amount of the document.

To do this, you must indicate the beneficiary, with the correct information of the person who will receive the amount. The person, in turn, can use the check to carry out any transactions they wish, such as deposits, exchanges, transfers, etc.

Blank endorsement

A blank endorsement does not indicate who will receive the check.

To endorse a blank check, you simply sign and date the back of the check and pass it on to the other person.

This means that the recipient can forward, deposit, or exchange the money without any problems.

If desired, he can also endorse in black, simply inserting his name as the beneficiary of that title.

What are the ways to endorse a check?

When endorsing a check, there are four ways to do this. See below for each and how it works to ensure your check is valid:

Check endorsement with signature

The most common way to endorse a check is by signing the back of the document. This signifies its validity and will be verified based on the endorser's details.

To do this, you must have all the information on the back of the check: full name, CPF, address, amount, and valid signature. If you don't have this information, the bank will not process the check.

It is also important to highlight that a correctly endorsed check can be configured as post-dated, as long as the correct payment date is entered.

Endorsed check for deposit

In the case of this type of check endorsement, you increase the security of the document, since, when delivering the documentation, the person receiving it cannot pass it on, only deposit the check.

For this to happen, on the back of the check you must write at the top: “For deposit only”.

This ensures the check cannot be cashed, and the bank will verify its authenticity. In case of loss, it's the safest way to cancel a check. Similarly, for checks sent by mail, it's a way to increase security.

Endorsing a check to transfer funds to another person

If your purpose for issuing the check is to transfer it to another person, there is a simple way to endorse your check.

When filling out the form, you should write “pay to order” and then include the person’s name on the check.

This allows the person to go to the bank and receive the amount directly. If desired, they can also deposit the money.

It is important to keep in mind that in the case of checks with high amounts, the bank may request the presence of the person who issued the check for payment to take place, as a form of security for the transaction.

Endorse commercial check

Finally, if you need to endorse a check in a commercial setting, you must provide all the necessary information on the back so that it is valid for the bank.

This means that you must indicate your commercial establishment, your name, all company information (CNPJ, address) and, finally, sign so that the check is issued correctly.

This way, when it comes time to transmit your endorsed check, you won't have any problems with the bank.

Some precautions with endorsed checks!

There are some precautions you need to take when endorsing a check or receiving an endorsed check. This is to avoid problems when receiving your money or paying bills:

• Pay attention to whether the check is crossed. If so, the beneficiary can simply deposit it. If not, they can cash it directly at the bank.
• For more secure payments, it is recommended that you endorse the check in black ink so that only the person to whom it is intended can receive it.
• Be careful when accepting checks. We recommend accepting checks endorsed by truly trustworthy companies or people you know well.

By taking these precautions, an endorsed check can be a safer way to receive the amount received.

Frequently asked questions

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