Business Endorsement Stamp - Required Verbiage

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Question:

When a business uses a stamp to endorse their checks, what is the requirement for verbiage on the endorsement? Should it include the bank of first deposit ABA number in addition to the business account number?

Answer:

There is no standard, except that you don't want the stamp to run out into the area of the check reserved for bank endorsements. At a minimum, I suggest including the name of the business, and "Pay to XYZ Bank, for deposit only." Often, including the depositary bank's ABA routing number makes returning the check easier, but it's certainly not required. Including the depositor's account number can be a help to you if you have to charge a check back, but putting that number on checks is becoming more and more an "issue" for some customers, who feel that it compromises their security. If you can work well without it, I don't suggest pushing the issue too hard.

First published on BankersOnline.com 2/18/08