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peggypie5 | What does "For Deposit Only" legally mean on a check endorsement? |
I work in a small community bank and I have to "teach" about proper check endorsements at our monthy teller meeting. I'm just looking for a good way to explain it. |
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sexytrojan
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You work at a bank and you can't easily explain that?
I use "For Deposit Only" because I mail a lot of my checks. If they get into the wrong hands (get lost), then a shady person won't be able to take them to a "No ID" check cashing place.
I put the following on the back of my check:
For deposit only to Commerce Bank, My Name, My Account Number, |
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Kevin C
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It means that the check cannot be cashed, only deposited into your account. |
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purpleama456
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I would say it simply means for deposit only. It can't be cashed out |
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Zeta
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I think if you read this page: http://en.wikipedia.org/wiki/Deposit you're have a better understanding. |
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esplot
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It means what it says. Its so that there is a paper trail. I deposit the check and in order to get money out of the account I have to make a proper with drawl. |
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smartypants909
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It means that check can only be deposited in the account named, I would never write "for deposit only" without putting the account numbet with it. It protects the customer until they can put the check in the bank so it cannot be cashed or stolen. |
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curiousgeorge
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It means you can't cash the check & recieve the money immediatly. If there is an account number , such as "For deposit only in account 55555555", it means the monies can only be
deposited in that account number.
It is used to prevent unauthorized cashing of a check. |
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efor1124
 |
It means that you can only deposit the check into your account. Meaning that the check can't be cashed. |
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trampslaydee
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I means exactly what it says, that the check can only be deposited, not cashed and no cash back on a deposit. An even more restrictive endorsement would be "for deposit only in acct. xxxxxxx". Generally speaking, people use this endorsement to prevent someone from stealing the check and then cashing it out.
As a teller, if you see this endorsement, you can only accept it for deposit. |
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Nosy Parker
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I would say that it means that you can't get any cash from the check. The total amount must go into a bank account.
Of course, if it's a checking account, I guess you could write a check for cash, as long as the account will cover it. |
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The Krieg
 |
An endorsement may be made after a specific direction ("pay to Dolly Madison" or "for deposit only"), called a qualified endorsement, or with no qualifying language, thereby making it payable to the holder, called a blank endorsement.
The qualified endorsement is a restriction on what the bearer can do with the check. |
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Answer King
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In general, it's a loss prevention measure. If you stamp (or write) "For Deposit Only" along with your name and/or account number on a check when you endorse it, then if the check is later lost, stolen, or misappropriated, the funds can't be released to someone else.
If, say, you had to trust someone else to deposit a check for you, and you weren't quite satisfied with that person's reliability, writing "For Deposit Only" on the check would prevent that person from cashing the check and keeping your money. |
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