What They Told Me at the Bank Regarding My Business Checking Account
As you may already know from some of my posts like Water Leak Woes , my husband and I own a little condo that we rent out, and I have a checking account in our business name. We are not incorporated, so the account is a "DBA" ("doing business as") account that also has my name on it, for convenience. My husband is also listed as a signer on the account, but I'm the Paperwork Goddess and therefore handle all the transactions.
I was depositing a couple of money orders from my tenant, and the lady at the bank--a new person I'd never met--told me that she had "gone ahead and stamped" the money orders for me, because I had signed my name on them. I was unsure of what she meant, and she said that she had stamped "For Deposit Only", because they were made out to the business name. And I had signed MY name.
I explained that it was a DBA account, and that my name was ON the account. She said it would be different if they were made out to me and not the business ("But l'etat, c'est moi !" I wanted to say, feeling a bit Napoleonic. I refrained). I asked her, somewhat incredulously, if she actually wanted me to write the business name instead of endorsing with my signature, and she said yes. "But anybody could just write the business name and cash them!" I protested.
But no, fortunately. Apparently, if an instrument is made payable to a business, it cannot be cashed, only deposited. But why, when I was depositing the funds in the first place, and they could not be cashed ANYWAY, would she tell me I needed to have "for deposit only" on the back? I did not feel like quibbling. I thanked her for this new information and took my leave...wondering why no one from the bank at which I have had my business account for over ten years and made regular deposits has ever told me this before.
Image Credit » http://pixabay.com/en/columnar-imposing-powerful-large-60220/ by Hans