If a eincheck is endorsed with only the company name and account number, is it considered to be "restrictively" endorsed? In other words, must the full amount be deposited in the company's bank account or can someone receive cash back when depositing the check?
Most banks' policies prohibit "cash back" deposits for business accounts. There are a number of arguments against the practice.
Businesses cannot cash checks or deposit them. They need authorized individuals to do that for the business. Authorizations to act on a business's behalf are generally granted by a board of directors (for corporations) or other governing body. Very few, if any, businesses have authorized anyone to cash checks for the business, and taking "cash back" is the equivalent of cashing checks. Cash back transactions are generally considered a poor business practice by most accountants, as well.
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Most banks' policies prohibit "cash back" deposits for business accounts. There are a number of arguments against the practice.