What is the purpose of writing “for deposit only” on a check when depositing it?
Banking
Asked by Question Bot11/Jun/20121 answer
1 Answer
F
Faisal Khan
Answered 11/Jun/2012
In addition to the excellent answer by Gus Fuldner cheques everywhere around the world (usually) have Payee Name. This means for example, if the cheque is written to my name "Faisal Khan" - I can get it cashed over the counter. Some cheque books have the an added phrase at the end "or bearer" which incidentally is used when the Payee Name is signed out as "Cash".
If you put a stamp on the cheque or write "Payees A/C Only (Or A/C Payees Only)" this would imply that over the counter encashment of the cheque cannot be done, it must be deposited into a bank account with the same name of the Payee in order to be processed.
If you put a stamp on the cheque or write "Payees A/C Only (Or A/C Payees Only)" this would imply that over the counter encashment of the cheque cannot be done, it must be deposited into a bank account with the same name of the Payee in order to be processed.