If the payee line on a check shows 'cash', what action should you take?

If the payee line on a check shows 'cash', what action should you take?

• A. Endorse the check yourself
• B. Have the payee write their name on the payee line
• C. Return to sender
• D. Cash it as is

Answer: (B)

Checks that say “Cash” on the payee line are bearer instruments, which means anyone presenting the check could cash it. The best practice is to have the person presenting the check write their name on the payee line so the instrument becomes payable to the order of that specific person. This converts it from a bearer check to a named-payee check, enabling normal processing and proper accountability (ID checks, endorsements, and credit to the correct account). Endorsing the check yourself would be inappropriate since you’re not the payee, and cashing it as is or returning it to the sender isn’t the right step if the goal is secure, proper handling. The key idea is to clarify the payee by writing their name on the line before proceeding.

Checks that say “Cash” on the payee line are bearer instruments, which means anyone presenting the check could cash it. The best practice is to have the person presenting the check write their name on the payee line so the instrument becomes payable to the order of that specific person. This converts it from a bearer check to a named-payee check, enabling normal processing and proper accountability (ID checks, endorsements, and credit to the correct account). Endorsing the check yourself would be inappropriate since you’re not the payee, and cashing it as is or returning it to the sender isn’t the right step if the goal is secure, proper handling. The key idea is to clarify the payee by writing their name on the line before proceeding.