How you complete the back of the slip defines who holds legal claim to the underlying money. Under commercial code standards, your endorsement style changes the document from a private order into negotiable cash or a tightly restricted transfer. Choosing the wrong method exposes you to substantial fraud risk.
| Endorsement Type | Required Text & Format | Security Level & Processing Route |
|---|---|---|
| Blank Endorsement | Payee signature only, written on the top line. | High Risk: Converts the draft into bearer paper. Anyone holding it can legally cash or deposit it. |
| Restrictive Endorsement | "For Deposit Only" + specific account number + payee signature. | Low Risk: Prevents cashing at the counter. Funds must route into the designated account. |
| Special Endorsement | "Pay to the order of [Third Party Name]" followed by original payee signature. | Moderate to High Risk: Transfers ownership to an external individual. Many institutions now refuse these due to fraud. |
| Mobile Capture Endorsement | "For Mobile Deposit Only at [Bank Name]" + payee signature. | Highest Digital Compliance: Blocks duplicate-presentment across multiple digital banking platforms. |
A blank endorsement carries the greatest structural vulnerability. If you sign the document in your car or at home and lose it on the way to a branch, the finder can technically present it as bearer paper. Never apply a blank signature until you are standing directly in front of an authorized branch teller.
A restrictive endorsement offers the best protection for standard deposits. Writing "For Deposit Only" stops third parties from converting the document to cash at a teller window. Combining this restrictive phrase with your bank name and account number locks down the document so it cannot be diverted into unauthorized accounts.
