Joint endorsements are a commonly used method for authorizing the cashing of checks issued to two or more payees. This conventional practice is intended for both legal reasons and for protecting the parties involved in the transaction.

Under the practice, if the check lists two names as beneficiaries, and the names are separated by the word ‘and’ or any other symbol or abbreviation of the word, the check must have a joint endorsement. This means that both parties must sign the check in order to cash it. Instances where the beneficiaries names on the check are separated by the word 'or' require a signature from one of the parties to cash the check.

Tax refund checks are an example of a check that is commonly issued requiring a joint endorsement. Many tax refunds are not paid until the check is endorsed by both parties. If a taxpayer is filing jointly with their spouse, the tax refund check must be properly endorsed by both parties for the check to be valid.

In addition to tax refund checks, joint endorsements are also often used for business transactions and real estate purchases. In this instance, both parties involved in the transaction must sign the check in order to access the funds.

The primary benefit of using joint endorsements is that both parties are held equal responsibility for the funds. This allows for greater legal protection for both parties. The main disadvantage to joint endorsements is that it can require more time to complete the transaction, as both parties must sign the check before it can be cashed.

Overall, joint endorsements are a common practice used to authorize the cashing of checks. It is beneficial in that it holds both parties responsible for the funds and offers legal protections, but it can be a time consuming process as both parties must sign the check. This process should be followed in a variety of transactions, including tax refunds, real estate purchases, and other business agreements.