As a professional using a lot of checks, both issuing and receiving, it is very important to know what all things to enter and endorse at the backside of the check? Many important functions should do at the backside of the check, and it is very important to know. A check, especially a paper check, is very important to get cash even in this technological era. It is still given for payment purposes and also for paying rents and bills.
Online Check Writer
New Customers a Week
Transactions per Week
What are all things there on the backside of the check?
After understanding the essential matters on the front side of the check, we will navigate the backside of the check. While considering the flip side of the check, the backside of the check possesses three parts.
1. Endorsement space
Before depositing a check or cashing it, a check should endorse. In other words, a check should encrypt regarding its usage, and this will help the misuse of the check. For example, if a check is endorsed on its backside as ” deposit only,” even if the check is lost, it cannot use by a third person. Hence fraud usages can be prevented, and thus it is impossible to misuse an endorsed check even when the check stolen. Hence endorsing a check at the endorsement area will help to prevent all types of frauds.
2. Security screen
The security area, otherwise known as a security screen, is only for ” official purpose.” That means both the payer or the payee do not have any role there and should not write anything there and is strictly for the financial institutions. Usually, banks and financial institutions utilize this space for noting the sequence of steps involved when a check is processed. This security section on the flip side of the check will be printed in very light pink with a pattern of lines to prevent any fraud activities based on the check. It will also cease the possibility of taking a photocopy or reproducing the check. For a legitimate check stock, if one observes a writing “original document ” closely, it will be written at this security screen.
A security box will see to the security screen, which is rectangular and resembles exactly a box. A warning or some suggestions regarding the genuineness of the check will write in the box, which will definitely discourage the fraudulent people from doing any illegal activities and also make the user conscious. Maybe the warning on the security box is to check for the watermark to display the genuinely.
Signing in the backside of the check
There exist several confusions regarding the signature put at the backside of the check. The major doubt being who will sign is whether the payer or the payee. It is a fact that the only place you have to put your signature is at the front-right side of the check, where there is a signature line. Even though you can sign at the front side only, you can give instructions as the owner of the check regarding the payment mode.
In a scenario where you are the receiver and not the payer, there will be occasions where you will not ask to sign at the backside of the check. However, the banking experts usually opine that it is better to put it at the backside of the check. There were situations when the check was sent back to the payer as the receiver’s signature was missing. It may result in further delays, and major loss as an extra fee should pay to clear the check. There were also situations when money was issued. And the bank rejected the check as the signature at the backside was missing. Hence it could be stated that the receiver must sign at the backside of the check, which applies to all sorts of checks, including personal checks.
Which numbers mentioned at the backside of the check?
Numbers such as routing number and account number are mentioned at the front side of the check, whereas there will be some numbers pre-printed at the backside of the check. For tracking checks, some pre-printed numbers endorsed will be there on the endorsement and will be more helpful for that business, which prints checks on blank check stock.