Signature Card
What Is a Signature Card?
A signature card is a document used by financial institutions to record the authorized signatures of individuals associated with a bank account. It verifies who has permission to access the account and conduct transactions.
Signature cards are commonly completed when opening a new bank account.
Why It Matters
Signature cards help banks verify account ownership and protect against unauthorized transactions. By comparing signatures on documents or checks with those on file, banks can confirm that the correct person is conducting the transaction.
They also establish legal authorization for account activity.
How Signature Cards Work
When opening an account, individuals typically sign a signature card that includes:
- the account holder’s name
- signature sample
- account information
- authorized signers
Banks store this information as part of their official account records.
Example
If a check is written from a business account, the bank may compare the signature on the check to the signature card on file to verify authorization.
Signature Card vs Account Agreement
- A signature card records authorized signatures.
- An account agreement outlines the terms and conditions of the account.
FAQs About Signature Cards
Are signature cards still used today?
Yes, although many banks now store digital signatures.
Can multiple people sign a signature card?
Yes, joint account holders or authorized users may sign.
Why do banks require signature cards?
They help verify identity and authorize transactions.
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