In this article we explain how to endorse a check for the other person to cash. It is a set of steps that an individual must carry out, in order to transfer the power to collect this document to whoever wishes..
Commonly when indicating the word "endorsement" refers to the action already mentioned, therefore the individual who receives this benefit will be the one who must make the transaction.
Checks can be endorsed by natural and legal persons, so it is necessary to know how this type of procedure should be carried out. In the same way, the collection of the same will depend on what is agreed between the people involved..
At this point it should be noted that, according to specialists, the vital element that this type of document must have is the signature of the drawer (the issuer of the check), since otherwise it cannot be cashed..
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The following are a series of steps to endorse a check so that someone else can cash it:
-Rotate the check so that you can see a series of lines located across the top this way. Next, fill in the important data of the person who should cash the check, in the section "pay to the order of" or "pay to the order of".
In general, the information should include the name, surname and the identification number or DNI.
-After having carried out this step, enter the name and surname of the person making the transfer. It is important that the data must match the front of the check. At the end, the signature will be placed to indicate to the bank that the document rights are being transferred.
-The last step will be to deliver the check to the person in question. At this point, it will be possible to establish the way in which this document will be charged, either by the box office, or by indicating the account number of the person so that the funds are deposited.
In this sense, the bank will also have the possibility of requiring the presentation of the identification card for the verification of the data..
There are different ways the endorsement can be made:
-When the check is blank and only has the signature of the drawer. In this case, the recipient can put all their data and the amount of money to be collected, or endorse it for a third party to collect or deposit it..
You are urged not to endorse blank checks, as they are prone to being cashed by anyone.
-There is an endorsement to the bearer, which has not specified the beneficiary or the person who will be in charge of collecting it.
-The endorsement on the nominal, nomitative or regular type check is the one explained above. It contains the specific data of the drawer and the beneficiary.
In this case, you need to specify two types of document:
-Regular check: can only be endorsed once.
-Deferred pay check - can be endorsed twice.
In view of the above, a series of aspects to take into account can be pointed out:
-It is recommended to fill in the information with permanent ink so that the data found there is not violated.
-Likewise, it must be remembered that the writing must be maintained and as clear as possible, since computers are in charge of analyzing the authenticity of the signature and the data that they comprise. An error can result in the cancellation of the process.
-Some banks may require the fingerprint of both the issuer and the person who will cash the check.
-Endorsements can also be made in favor of legal persons. In this case, the name of the company or institution, the registration number (in some countries it is the RUC, RIF or CUIT) and the account number are entered..
-Although endorsement is understood to be the transfer of power and rights from one person to another, it is possible that the recipient of the document may also endorse it. The latter will depend on the type of check.
-If the phrase "not to order" is found on the check, it indicates that the document cannot be endorsed, so it will only be charged by the person for whom it was issued..
-The endorsement can be made on the top or bottom of the check.
-As mentioned above, there is the possibility of endorsing a check a second time. In this case, the process will be exactly the same, trying not to affect the data that was previously placed.
However, it should be mentioned that it is important to take into account that not all checks allow this type of procedure.
Although it is always recommended to be careful when filling out a check, a series of recommendations are made in case of any type of error or inconvenience:
-If there is an error with the name in the writing on the front of the check, when filling in the rest of the data, write the name with the same error and then correctly. That way, the fault will be solved.
-In the errors in terms of quantities and spelling errors, some specialists suggest that it is preferable to place a clarification on the back of the check. In both cases, the issuer must place his signature to imply that he is aware of the changes made..
-It is necessary to pay attention to the agreement of the figure in numbers and letters, since the check could be canceled, or the bank will opt for one of the two options, canceling more or less than indicated.
-The firms must be located sharing common spaces in order to maintain order and neatness in the document.
-According to some specialists, it is suggested to have proof of the checks issued, since that way you will have more complete and controlled information on bank movements.
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