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Discussion » Questions » Business » When writing a business check, does the signer just sign the Business name or do they have to sign their name?
my2cents

When writing a business check, does the signer just sign the Business name or do they have to sign their name?

If they only sign the Business name, should the bank refuse to honor the check? 

ie. If XYZ Biz pays car repairs.
Check is made to ABC Auto and Signed XYZ Biz

Should the bank pay it? 

Also if the XYZ Biz check is stolen....who is on the hook? The Auto repair who took the check (with NO ID and No personal signature) or the Bank who honored the check (with No personal signature)?

Posted - July 27, 2018
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Responses


  • 19942
    An individual who is authorized to sign checks signs their own name.  Things may be different in each state, but I would think that the bank should not pay that check as it is not signed by an authorized person.  The bank to whom the check is presented for payment should be on the hook because the bank shouldn't have paid it in the first place without proper ID.  Most banks in NY will not honor a third party check.  That is - if XYZ gives you a check,, you endorse the check over to me and I try to cash it, none of my banks will cash it or accept it for deposit into my account.  The check would have to be made out to me as payee.
      July 27, 2018 6:48 PM MDT
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  • 32700
    That is what I thought. We had a business check stolen. I have to go into the bank Mon. Just wanting to know before I go in.
      July 27, 2018 7:02 PM MDT
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  • 17404
    Just put a stop payment on the check.
      July 27, 2018 8:01 PM MDT
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  • 32700
    Thank you...but stop pay is no good because they already deposited the check and the money has been withdrawn. 
    Bank was open this morning....I had to sign paperwork saying it was fraud.  
    I was just curious as to who will ultimately lose the money. 
      July 28, 2018 8:51 AM MDT
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  • 13071
    At the end, I think the person who accepted the check would be liable. After all, they are the ones who cashed it without verification (signature)
      July 29, 2018 7:02 AM MDT
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  • 19942
    A stop payment on the check is the best thing to do and you can probably do it by phone.
      July 27, 2018 8:29 PM MDT
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  • 32700
    Thank you. But stop pay is too late because the money is already withdrawn. It is written as a 2 party check just not signed correctly because the person did not know what name to sign (only name printed on the check is my business name).

    Bank was open this morning....I had to sign paperwork saying it was fraud.
      July 28, 2018 8:56 AM MDT
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  • 19942
    I had a feeling it would be too late when I reread your original post.  Now, let's see what the bank does.  
      July 28, 2018 1:51 PM MDT
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  • 13071
    I dont think they should or would honor it if the check was signed with the business name only, because a business name still needs a representative to operate the business. 
      July 29, 2018 7:00 AM MDT
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  • 32700
    I agree. But none the less it was honored by both banks. The one it eas deposited into and mine. But mine is supposed to be handling it.
      July 29, 2018 7:13 AM MDT
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  • 13071
    I think YOUR bank will ultimately end up paying for it.
      July 29, 2018 7:28 AM MDT
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  • 22891
    not sure
      July 29, 2018 5:57 PM MDT
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