How to Authenticate a Check for Your Company

How To Endorse Business Checks

As a business owner, you want to make it easy for customers to pay you. While many prefer cash or credit cards, some may prefer checks. Processing credit card payments can be costly, making checks a less expensive option. Endorsing a check made out to your business is different than endorsing personal checks.

Endorsing Business Checks

To endorse the check, go to the endorsement area on the back. Write the business name, sign your name, write your title, and add any restrictions. If you receive a large volume of checks, consider using a stamp for endorsements. Check with your bank for any specifications before ordering a stamp.

Restricting the Endorsement

A restrictive endorsement reduces risk by limiting what happens to the funds after endorsing the check. Write "For deposit only to account #XXX" to ensure the check is deposited to the specified account and cannot be cashed.

Cashing a Check Paid to Your Business

Banks may be hesitant to cash business checks, so it's best to deposit these checks into your business account. Cashing business checks is challenging as banks are cautious about unauthorized individuals withdrawing money from business accounts.

Acting Like a Business

Require customers to write checks to your business instead of you to demonstrate legitimacy and limit personal liability. Using personal accounts for business checks can lead to added expenses and risks.

Other Payment Methods

If checks are burdensome, consider using cash, credit/debit cards, electronic payments, or fintech payments for more affordable and efficient payment processing.

Frequently Asked Questions (FAQs)

Sign your business name on business checks. It's not advisable to deposit business checks into personal accounts as banks may raise red flags and cause delays.