Scan Machine Stamp

Answered by:

Question:

We started using scan machines in our office to make electronic deposits to our business account. We have always stamped the back of our checks "for deposit only" with our name and account number. The machine now puts a stamp on the back of the check with the bank name, date, item number and routing number. Are we required to stamp this check or is the scan machine stamp sufficient? Is there an UCC code to look to for information on this subject?

Answer:

UCC section 4-205 allows a bank to accept a check for deposit without an endorsement from its customer. The endorsement stamp isn't a legal requirement for negotiation to your bank whether you deposit the real thing or an image. The only drawback I can see is the potential for more check drawers to complain about seeing checks paid in their accounts without endorsements. A lot of bank statements go out with images of the front of paid checks only (if any image is included), so that may not be a concern.

First published on BankersOnline.com 3/02/09