snopes.com Post new topic  New Poll  Post a reply
search | faq | forum home

  next oldest topic   next newest topic
» Hello snopes.com » Non-UL Chat » Business Bytes » 'For Deposit Only' on checks?

 - UBBFriend: Email this page to someone!    
Author Topic: 'For Deposit Only' on checks?
Silas Sparkhammer
I Saw V-Chips Come Sailing In


Icon 504 posted      Profile for Silas Sparkhammer   Author's Homepage   E-mail Silas Sparkhammer   Send new private message       Edit/Delete post   Reply with quote 
What does it mean if someone endorses (signs the back) of a check and writes "For Deposit Only?"

I had thought this meant that the recipient intends to deposit the money in his own account (savings, checking, or whatever) and not to take the money in cash. It's a way of saying, "If someone tries to cash this check, they've stolen it."

My friend thought it meant, "I'm done with this check. It's as good as cash. Anyone who wants it can have the money." (They sent the check to me thinking I'd be able to cash it.)

As I understand it, what my friend should have done was sign the back of the check and write "cash" on it.

(And even then, I don't know if my bank would give me cash for it: it would be a two-party check from out of state.)

Silas (we ended up using paypal)

Posts: 16801 | From: San Diego, CA | Registered: Sep 2000  |  IP: Logged | Report this post to a moderator
Noemi
Ding Dong! Merrily on High Definition TV


Icon 82 posted      Profile for Noemi   E-mail Noemi   Send new private message       Edit/Delete post   Reply with quote 
My understand is the same as yours, that it means that the check is only supposed to be deposited into an account. I could be wrong I suppose, but the phrase implies the check is just supposed to be deposited.

Noemi

--------------------
Cleverly disguised as a responsible adult.
My blog, no guarantees about witty or intelligent content. My current projects.
Coveted Beads <---- our eBay store, new items being added somewhat regularly

Posts: 8418 | From: Wyoming | Registered: Feb 2002  |  IP: Logged | Report this post to a moderator
Little Pink Pill
Little Sales Drummer Boy


Icon 1 posted      Profile for Little Pink Pill     Send new private message       Edit/Delete post   Reply with quote 
Same here. If you write "deposit only," I'm pretty sure it means it can only be deposited into the account of the person to whom the check is made out to. You usually write your account # on the back, too.

If you want to get cash, don't you actually make the check out to "Cash," and then fill in the amount? I don't think you write anything on the back.

--------------------
The technical term is narcissism. You can't believe everything is your fault unless you also believe you're all powerful.--House

Posts: 2684 | From: Budapest | Registered: Sep 2005  |  IP: Logged | Report this post to a moderator
snopes
Return! Return! Return!


Icon 606 posted      Profile for snopes   Author's Homepage   E-mail snopes       Edit/Delete post   Reply with quote 
quote:
What does it mean if someone endorses (signs the back) of a check and writes "For Deposit Only?"
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.

- snopes

Posts: 36029 | From: Admin | Registered: Feb 2000  |  IP: Logged | Report this post to a moderator
Jocko's Jolly
Happy Xmas (Warranty Is Over)


Icon 1 posted      Profile for Jocko's Jolly   E-mail Jocko's Jolly   Send new private message       Edit/Delete post   Reply with quote 
You're right, your friend is wrong. It means that the check is only to be deposited into the recipient's account. It's used a lot for bill payments, etc., because companies just deposit all those checks, and someone who steals it will usually try to cash it. It's supposed to prevent anyone from cashing it (I've not heard of anyone being able to cash a check with that written on the back, but then I've also not heard of anyone trying to). Your bank would give you the money if you have enough in your account to cover it. Otherwise, they might give you some of it and wait until the check clears the other bank to make the balance available to you, you'd have to check with your bank.

--------------------
Like every good third-in-a-series it contains a whole load of ewoks, ‘Clubber’ Lang, whey-faced Sophia Coppola, Sean Connery as the Pirate Captain’s estranged dad, a crappy CGI alien, and Richard Pryor on a donkey. -- Gideon Defoe

Posts: 2211 | From: Harford County, MD | Registered: Oct 2005  |  IP: Logged | Report this post to a moderator
AnglsWeHvHrdOnHiRdr
Happy Xmas (Warranty Is Over)


Icon 1 posted      Profile for AnglsWeHvHrdOnHiRdr     Send new private message       Edit/Delete post   Reply with quote 
For the record, my bank doens't accept "For Deposit Only" anymore in lieu of endorsement.

I'm not sure why, though...

--------------------
"When a stupid man is doing something he is ashamed of, he always declares that it is his duty."--George Bernard Shaw

Posts: 19266 | From: Nashville, TN | Registered: Jun 2002  |  IP: Logged | Report this post to a moderator
YeeMum
Happy Xmas (Warranty Is Over)


Icon 1 posted      Profile for YeeMum   Author's Homepage     Send new private message       Edit/Delete post   Reply with quote 
you have to sign it as well but for "deposit only" designates the intent

edited for stupid spelling

--------------------
Contact me for discounts
Charter member WNDMDC
"I am putting you on hold now.Listen to the elevator music and LIKE it."~My 'J'

Posts: 1816 | From: NE, Oregon | Registered: Dec 2005  |  IP: Logged | Report this post to a moderator
ThornyWreath
Happy Holly Days


Icon 1 posted      Profile for ThornyWreath   E-mail ThornyWreath   Send new private message       Edit/Delete post   Reply with quote 
According to my accounting classes in high school and college--what snopes said. [Razz]

Thorny "hey, it's only been &^%$teen years!" Rose

--------------------
A little glitter can turn your whole day around.--Junie B. Jones

Engine 3:16

Posts: 1456 | From: Tennessee | Registered: Jul 2003  |  IP: Logged | Report this post to a moderator
quiltsbypam
Happy Holly Days


Icon 1 posted      Profile for quiltsbypam   E-mail quiltsbypam   Send new private message       Edit/Delete post   Reply with quote 
quote:
Originally posted by Little Pink Pill:
Same here. If you write "deposit only," I'm pretty sure it means it can only be deposited into the account of the person to whom the check is made out to. You usually write your account # on the back, too.

If you want to get cash, don't you actually make the check out to "Cash," and then fill in the amount? I don't think you write anything on the back.

In NYS at least you have to sign the back, in addition to filling out the front.

--------------------
"No Biblical hell could ever be worse than the state of perpetual inconsequence." Beatrice in Dangerous Beauty

Posts: 1816 | From: Cayuga County, NY | Registered: Nov 2005  |  IP: Logged | Report this post to a moderator
Lgreywolf
Deck the Malls


Icon 1 posted      Profile for Lgreywolf   E-mail Lgreywolf   Send new private message       Edit/Delete post   Reply with quote 
Yeah, I was a bank teller for three years. "For deposit only" on a check is to ensure that the check gets deposited into the recipient's account (like everyone else said [Smile] .) If a check is simply endorsed with a signature, then if it gets lost someone can possibly cash it or deposit it into their own account; that is, if they double-endorse it themselves. We were not supposed to cash any double endorsed checks, and I knew someone who went from teller to customer service rep who got fired for authorizing the cashing of a double endorsed check for someone she knew which turned out to be stolen.

Or, as my husband said, "What the hell, I don't need it anymore" is not what "For deposit only" means.

--------------------
"Most Jewish holidays can be summed up very simply: They tried to kill us. We won. Let's eat." - my in-laws' Rabbi.

Posts: 430 | From: North of Boston, MA | Registered: May 2002  |  IP: Logged | Report this post to a moderator
   

Quick Reply
Message:

HTML is enabled.
UBB Code™ is enabled.

Instant Graemlins
   


Post new topic  New Poll  Post a reply Close topic   Feature Topic   Move Topic   Delete topic next oldest topic   next newest topic
 - Printer-friendly view of this topic
Hop To:


Urban Legends Reference Pages

Powered by Infopop Corporation
UBB.classic™ 6.7.2