What is a full endorsement used for?

A full endorsement is used to transfer a check to another party, making it the correct choice. This process involves signing the back of the check in its entirety, which grants permission for the funds to be cashed or deposited by the individual or entity to whom the check is being transferred. This type of endorsement ensures that the check is fully passed on, allowing the new holder legal rights to the funds it represents.

In contrast to a full endorsement, options that mention rejecting a check or limiting liability do not pertain to the transfer of ownership or rights to the funds. A full endorsement simplifies the transaction while clearly indicating to banks and other financial institutions that the check is no longer the property of the original payee but has been assigned to another party. By using a full endorsement, the original payee effectively relinquishes their claim to the check's amount.