blank endorsement

A blank endorsement is a type of signature on a financial instrument , such as a check, a promissory note , and a bill of lading . It has no designated payee , so the person who possesses it can be considered a payee and demand payment. For example, a check made payable to “cash” and endorsed on the back with the signature of the account held. As the recipient is anonymous, the blank endorsement essentially makes the financial instrument into a bearer paper . A blank endorsement offers greater flexibility for these financial instruments as any bona fide holder can claim it. Yet, the risk of a blank endorsement is that if it is lost or stolen, the finder is able to cash, deposit, or claim it, and the payer must make the payment, resulting in security concerns.

[Last reviewed in February of 2025 by the Wex Definitions Team ]

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