While paper checks are becoming less common, it’s still important to understand how they work. When you sign over a check, you take a paper check written out to you and endorse it to another person, authorizing them to deposit or cash it. Let's look at how to sign a check over and some reasons why you might do this.
Why sign over a check?
While you may be able to conveniently cash a check from the comfort of your home via a bank’s app, there are still some situations when it might make sense to sign over a check.
- The original payee is unable to cash or deposit it directly. If the payee of the check lacks a bank account or has difficulty accessing banking services, signing over the check might be a solution.
- You want to transfer funds to someone else for a gift or to settle a debt
- You need help cashing a check and can’t get to your bank or use your bank’s mobile app
How do you sign over a check?
If you want to sign over a check to someone else, there are some precautions you’ll have to take first. First, confirm with the recipient that their bank accepts third-party signed-over checks. Some banks may have specific requirements or limitations.
Next, get the legal name of the person you’re transferring the check to. Then, you’re ready to endorse the check. Here’s how you can sign over a check:
- Signature: First, sign your name in the endorsement area on the back of the check
- Pay to the order of: Next, write "Pay to the order of [Recipient's Name]" below your signature on the back of the check
- Any additional details: If the recipient's bank requires additional information, include it below the "Pay to the order of" line
- Hand over the check: Give the recipient the check so they can cash it in whatever way they choose
Alternatives to signing your check over
If signing over a check feels too complicated, there are other options to consider.
You can deposit the check into your own bank account and then send the money to the intended recipient using a method such as sending a payment with Zelle®, with a new check or via electronic transfer. You can also wait until you have time to go to the bank and cash the check yourself or download your bank’s mobile app, which may allow you to deposit checks online.
When does it make sense to sign over a check?
Depositing a check directly into your account is often the most efficient option. However, there may be times when that isn’t possible – maybe you’re unable to go to the bank and your bank doesn’t let you cash a check online. In that case, it may make sense to sign the check over.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
To send or receive money with Zelle® both parties must have an eligible checking or savings account. Transactions between enrolled users typically occur in minutes. Terms, conditions, and restrictions apply. For the protection of your account, Zelle® should only be used to send money to those you know and trust. Neither Citibank nor Zelle® offers purchase protection for payments made with Zelle® – for example, if you do not receive the item you paid for or the item is not as described or as you expected.
Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.
