I actually had to go to the bank today
and so I decided to ask.
The answer I was given is that a check is a legal document (a promise to pay).
In order to get your money from the bank, you need to sign the check over to them.
By endorsing the check you are attesting to the fact that you have transferred said document to them
and they can draw on that account.
money.stackexchange.com/users/868/George Marian
The best reason for endorsing a check is in case it is lost.
If the back is blank, a crooked finder could simply write "pay to the order of " on it and deposit it in his own account.
You do not need a signature for the endorsement.
The safest way to endorse a check is to write "FOR DEPOSIT ONLY" followed by an account number, in which case the signature is not needed.
most businesses make up rubber stamps with this and stamp it the minute they receive a check.
That way it has no value to anyone else.
Depositing checks is increasingly going the way of the dodo.
Many businesses today use check truncation - the business scans the check in, sends the digital image to the bank, and stores the check.
I was surprised that Chase already has an applet for iPhones that you can use to deposit a check by taking a picture of it!
money.stackexchange.com/users/876/Joel Spolsky
In my experience, you don't need to endorse a check with a signature to deposit it into your account.
You do if you are exchanging the check for cash.
Businesses usually have a stamp with their account number on them.
Once stamped, those checks are only able to be deposited into that account.
Individuals can do the same.
I have had issues depositing insurance and government checks in the past that had both my and my wife's name on them.
Both of us had to endorse the check to be able to deposit them.
I think this was some kind of fraud prevention scheme, so that later one of us couldn't claim they didn't know anything about the check.
money.stackexchange.com/users/1119/KeithB
Paper trail of who did the deposit.
Less significant for a personal account, but a bigger deal for accounts that are used by multiple people (e.g. a corporate checking account).
money.stackexchange.com/users/402/myron-semack
So the bank can (theoretically) compare that signature to the ID you provide, showing that the names and signatures match and that you are the person to whom the check was written.
money.stackexchange.com/users/1277/kajaco
I believe the banks are protecting themselves when they "require" your endorsement.
Years ago.
they used to ask for your endorsement, and not require it.
If you endorse the check, it legally authorizes them to debit your account, if the check is later returned for non-sufficient funds (NSF).
It mostly protects the bank, and not the customer.
money.stackexchange.com/users/4378/Rich
When the check is deposited, the bank verifies the signature in the check matches your signature in file.
money.stackexchange.com/users/1472/MoneyCone
Why do you need to sign a check on the back when you deposit it to your account?
What is the purpose of endorsing a check?
money.stackexchange.com
<bank-account><check>
money.stackexchange.com/questions/3667
money.stackexchange.com/users/1353/Vitalik
You endorse the check in case it gets lost, and to show that you endorse the cashing of the check. Whilst it is not clear that endorsing a check is necessary, there are number of reasons why it might be useful. It can help set a papertrail for the bank's records and also allows them to check that you are the person that the check was made out to. This being said, you will need to endorse a check if you are exchanging it for cash.
Endorsing a check may come in handy if the check is lost. It is doubtful that endorsing a check is necessary. Endorsing a check helps to establish a papertrail of who made the deposit. Endorsing a check may just be a safeguard for the bank. Endorsing a check allows the bank to check that you are the person who the check was made out to. Endorsing a check is necessary if you are exchanging the check for cash.