Certified Medical Assistant Practice Exam

What is the safest type of check endorsement?

1. Blank endorsement

2. Special endorsement

3. Restrictive endorsement

4. Qualified endorsement

The correct answer is: Restrictive endorsement

The safest type of check endorsement is a restrictive endorsement. This form of endorsement allows the payee to limit the use of the check, ensuring that it can only be deposited into a specific account. By writing "For deposit only" along with their signature and the account number on the back of the check, the payee provides clear instructions that the check cannot be cashed or transferred to another party. This significantly reduces the risk of fraud or misuse, as it effectively restricts the check's handling to just the depositing process. In contrast, a blank endorsement simply involves the payee signing their name on the back of the check, which makes it payable to anyone who possesses it and poses a higher risk of theft. A special endorsement allows the payee to transfer the check to another individual, which also increases the potential for fraud if that individual is untrustworthy. Qualified endorsements might include conditions, but they do not offer the same level of security as restrictive endorsements. Therefore, the restrictive endorsement is considered the safest approach when handling checks.