For on-us checks or transit checks, on what amount must you verify the maker's or endorser's signature?

For on-us checks or transit checks, on what amount must you verify the maker's or endorser's signature?

• A. Any amount
• B. Only large amounts
• C. Not applicable
• D. Only if the amount is over a threshold

Answer: (A)

Verifying the maker’s or endorser’s signature is required for every on-us or transit check, not just large amounts. The signature proves the person authorized the payment, so checking it against the account records helps catch forgeries, alterations, or unauthorized endorsements before funds are released. Since these checks are either drawn on the same bank or routed through another bank, there’s always a risk of fraudulent signatures slipping through if you skip verification, even for small amounts. By applying signature verification to all items, you maintain proper control and protect the bank and customers, regardless of the check’s dollar value.

Verifying the maker’s or endorser’s signature is required for every on-us or transit check, not just large amounts. The signature proves the person authorized the payment, so checking it against the account records helps catch forgeries, alterations, or unauthorized endorsements before funds are released. Since these checks are either drawn on the same bank or routed through another bank, there’s always a risk of fraudulent signatures slipping through if you skip verification, even for small amounts. By applying signature verification to all items, you maintain proper control and protect the bank and customers, regardless of the check’s dollar value.