If a customer comes in with their check indorsed "For Deposit Only", but they want cash back on their deposit slip; what is the ruling on this type of restrictive indorsement?

We do not allow Cash Back on checks endorsed this way. Usually we only see this on Business deposits, as they usually have an office person making the deposits and don't want them to have the ability to alter the deposit slip to take cash.

Same here, but this would be a check made payable to me, I wrote For Deposit Only on the back, but decided later that I needed some cash. Should the restrictive indorsement be crossed out, or should we just allow the cash back? Seems like confusion for the tellers, but making the customer deposit it and write a check is not exactly customer friendly either.

While maybe not the compliant thing to do, I've often had the customer strike out the restrictive endorsement and sign below (and on the deposit slip). I reminded the customer that the first endorsement binds the check for deposit only, but we were making an exception. The client felt informed and accomodated, and we kept them happy. But, remember it's an exception.

It's my understanding that the restrictive endorsement should stay and a withdrawal should be made from the account - assuming the presenter/depositor is an authorized signer. But I'll defer to a guru.

The logic I would use on this is: Would you cash this check that was being presented for deposit?

For a personal account the answer would probably be yes, thus allowing the payee to change the endorsement (single ling through, and customers initials). On a business account not so much.

If the check is payable to ABC Company, and a signer was in front of you could they cash the check? If they can't cash it they should not be able to get cash back.

Any other opinions? I always feel like I am missing something...

I'm no guru, but I agree with BBoyd: accept the check for deposit, and then do a separate withdrawal from the account (provided they have sufficient funds and you are not placing a hold on the check).