The use of paper checks has declined steadily since the September 2001 passage of Check 21, the law that permits use of e-checks, or images of bank checks. Nevertheless, some businesses and consumers still use paper checks and, in some cases, a copy of the back of a check is necessary for resolving disputes. Copying the back of a cashed check will almost always answer questions concerning payment, identity and receipt of funds.
What's On The Back
Before cashing or depositing a check, the person whose name appears on the front of the check after the words, "Payable To" or "Pay to the Order Of," signs the back of the check. The signature on the back of the check is called an "endorsement." Copying the back of a check ensures that the name of the payee and the endorser match. This can be one of the first steps to determine whether the check was fraudulently cashed or if the payor issued the check to the right person.
Where The Money Went
On occasion, a payee might add a line to the endorsement that states, "for deposit only." That typically means the entire amount of the check was deposited into a bank account, instead of the teller distributing cash. A copy of the back of a bank check may also show whether the original payee signed over the check to another party, who subsequently cashed or deposited the funds.
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