I will pay bill by mailing old fashioned cheques in envelop. I heard that if the letter is lost and someone steals the cheque and forges endorsement to pay to himself rather the payee written on the front, and he/she could cashes it at money mart or cashing service shops. How can I prevent this, I just want to make the cheque non-transferable/non endorsable to anyone other than the named payee.
I heard that I can write For deposit only to account of named payee, I'm the writer of the cheque, should I write this on the front of the cheque, or the back of the cheque (endorsement area)? The back of the cheque is reserved for the payee only? Could the payor write restrictive endorsement on the back? Any advice is appreciated.