What it is:
Joint endorsement is a requirement by many banks that checks be endorsed by all parties of a joint account.
How it works (Example):
If two or more individuals jointly hold a bank account, the bank may require a joint endorsement on checks made payable to any individual holder of the account. In other words, the bank may require all account holders to sign a check that is payable to anyone on the account if the check is to be cashed.
For example, suppose Bob and Jane hold a joint account at Bank ABC. If someone writes a check payable to Bob, Bank ABC may ask for a joint endorsement of the check by Bob and Jane if they wish to cash it. Therefore, both Bob and Jane would have to sign the check.
Why it Matters:
Banks require joint endorsements by joint account holders to ensure that all parties are aware that someone is cashing a check and depositing it into the joint account.