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  Home >> Checks/Money Orders >> Checks You Received  
Company Says I can only Deposit Check: Legal?

Can a company place "for deposit only" on the face of a company-issued check to a payee?


This is sometimes done in European countries, but not in the U.S. The intent is that by forcing the check to be deposited, the person it is being written to may not transfer the check to a third party.

If you have received a check with this instruction, visit your bank and ask about their procedures in such a case, or if you don't have a bank accoun, consider either opening one or asking the company to reissue your check without that instruction. It is always good to have a bank account. In many areas you can find free accounts and/or ones that require a very minimal balance to avoid fees. It will benefit you anytime you have a check, especially one like this.

Published on BankingQuestions.com 4/06/09