Question 1

What Is an Endorsement Stamp?

Accepted Answer

An endorsement stamp is used to put pre-decided or pre-inked information on a piece of paper. The use of such stamps helps to record information by foregoing the need to write the information again and again by hand.  The stamp finds a wide variety of uses as a check deposit stamp, business stamp for checks, name stamp for checks, etc. The stamps that the banks use as deposit stamps come either in black or red.

Question 2

What Should an Endorsement Stamp Say?

Accepted Answer

Depending on the type of endorsement that the stamp is used for, the content of the stamp can differ. For example, the bank endorsement stamp should have the account details of both the business and the personal accounts from which the money is being withdrawn or transacted. It can also display ‘PAY TO THE ORDER OF’ if you plan to withdraw cash.  A check endorsement stamp has the details of the person who is endorsing the check and can have the details of the drawer.

Question 3

Can I Use a Stamp to Endorse a Check?

Accepted Answer

Checks must have the signature of both the person whose name is on them and also the person who is issuing the check.  A signature stamp for checks is often permitted in place of an actual signature.   Though it is advisable to be cautious while using such a stamp as the same may be used for fraudulent activities by the scammers. You can think properly before you order a signature stamp.

Question 4

How Do You Use a Deposit Only Stamp?

Accepted Answer

You can ensure an added level of security by opting to use deposit-only stamps. These have a fourth line in the stamp that reads ‘FOR DEPOSIT ONLY.’ You can opt to put the next line as the name of your company.   The last line can be the details pertaining to the bank account, i.e. the bank account number, branch, etc. You can make sure to put the details of the account in which the check needs to be deposited thereby ruling out any aspect of misplacement or misuse of funds.