What is dollar endorsement?

Dollar endorsement refers to the act of signing the back of a check or other financial document in order to transfer ownership of the funds to another party. This endorsement typically includes the signature of the payee and the words "Pay to the order of" followed by the name of the new recipient. This allows the payee to transfer the funds to someone else, making the check payable to that person or entity.

Dollar endorsement is a type of bank endorsement in which the payee authorizes the bank to deposit the full amount of the check directly into their account. The payee signs their name on the back of the check, followed by the words "For Deposit Only." Dollar endorsements are typically used for large checks or checks that are being deposited into an account that is not linked to the payee's name.