An endorsement (indorsement) is an act of giving support. It can be either to someone or something, for example endorsing any skills. It can also be the placing of a signature, or a stamp that is the equivalent of a signature, on the back of a check, bill of exchange, promissory note, or another negotiable instrument, to make it cashable or transferable.
In the context of banking, an endorsement has a variety of categories. A blank endorsement merely involves the signature of an endorser without specifying any particular endorsee, thereby allowing the holder of the endorsed instrument to possess its value. While a blank endorsement offers flexibility, it also bears the risk of theft of loss. On the contrary, a special endorsement specifies the endorsee’s name, such as through the language of “pay to the order of . . . ”, thereby making the endorsee the only person to possess the value of the instrument. Alternatively, a restrictive endorsement limits the manner of using the instrument, such as through the language of “for deposit only”.
[Last reviewed in February of 2025 by the Wex Definitions Team]