Endorsing Checks in Pencil

Your customer should understand that pencil marks can quite readily be erased. Exactly what reason he has for insisting on using a pencil, I don't know. You can't show a law or regulation, because there isn't one. The customer's signature is what he wants it to be and it can be affixed in any way that he wishes and that you will accept. You, as the party accepting checks for deposit or to be cashed have the last word on what endorsement forms you will accept.

First published on BankersOnline.com 5/07/07