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#1407003 - 06/23/10 01:39 PM Cashing 'for Deposit only' Checks
C AP Offline
New Poster
Joined: Dec 2004
Posts: 7
Wiscasset, Maine
Some of our tellers have been allowing customers to cross out and initial 'For Deposit Only' on the back of checks and allowing the customer to cash the check or take cash back from the deposit. Do you allow this?

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Operations Compliance
#1407040 - 06/23/10 02:11 PM Re: Cashing 'for Deposit only' Checks C AP
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
No. smile

Deposit, then withdraw.

Probably fairly low to no risk if the check is made out to them and it it is their own account, but we like to follow rules. smile
I don't repeat gossip, so listen closely...

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#1407064 - 06/23/10 02:22 PM Re: Cashing 'for Deposit only' Checks #Just Jay
Aggs Offline
Diamond Poster
Joined: Nov 2009
Posts: 1,331
Hoosier Country
Same as Just Jay. "For Deposit Only" checks will only be taken for deposit, no exceptions. They can turn around and make a withdrawal easily, if they're depositing the item into their account.
CRCM + CAMS = certified compliance nerd

Opinions expressed in these threads are my own and not my employer's.

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#1407122 - 06/23/10 03:16 PM Re: Cashing 'for Deposit only' Checks C AP
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If the check is payable solely to me I can cross out the restrictive endorsement and get cash back. If the check is payable to my spouse (or anyone else) I cannot cross out the restrictive endorsement and get cash back.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#1407367 - 06/23/10 08:23 PM Re: Cashing 'for Deposit only' Checks Elwood P. Dowd
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,858
Cape Cod
Ditto to what Ken said. The only party with an ox to gore if the "for deposit only" instruction is ignored is the party that put it there. If that's the party who wants to cash the check, and you'd ordinarily cash it for him/her if those three little words weren't there, what's the big deal? But if Ken's signature appears in the endorsement following "for deposit only" and I bring it to his bank and try to line out the instruction and endorse under Ken's signature, you can plan on a visit from Ken or his attorney.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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