Definition of bank endorsement

bank's endorsement of checks paid and presented to the check writer's bank for collection. Generally all checks passing through a bank, except those written by its own customers (called on-us item), checks bundled together in cash letter, or checks cleared with other banks through a local clearinghouse are stamped with the bank's ABA transit number. This identifies the bank to other financial institutions and indicates the words "pay any bank" and the date the check is paid.