What does "For Deposit Only" legally mean on a check endorsement?

Question

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.

Answer 1

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,

Answer 2

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.

Answer 3

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.

Answer 4

For Deposit Only

Answer 5

For Deposit Only Stamp

Answer 6

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.

Answer 7

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RE:
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.

Answer 8

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.

Answer 9

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.

Answer 10

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.