Acceptable Payee Names on Business Account

There are no regulations, just the UCC's direction that your bank guarantees every endorsement on every check. There isn't anything that says "You must be this careful, but no more." You simply promise the world that the payee got the money.

Rather than look for a level of flexibility, I suggest you tell your customers that the checks they deposit should consistently be made payable to them the way the account is set up. If they do not, you will require them to endorse the check twice, once the way it is written and a second time in the name of the account.

First published on BankersOnline.com 7/18/11