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Question & Answer
Question: Our customer brought in a check and on the back, above his endorsement, he has stamped "without recourse" on the check. What does that mean?
Answer: It means the customer has applied a qualified endorsement and you should not accept the check for negotiation. Placing the words "without recourse" or other words that mean the same thing on the back of the check indicates the endorser is saying they will not be held responsible if the check is returned unpaid. By accepting the check, you also accept ALL the liability. Obviously, you will not want to do that.
Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 7, 5/96
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