To endorse a check made out to cash, a person writes his personal account number on the back of the check if it is being deposited directly into his own bank account. If the check is being cashed, the person may have to visit the bank on which the check was drawn.
At the issuing bank, the person can sign the back of the check as evidence that funds were received, according to BankingQuestions.com. About.com warns that banks may not honor checks made out to cash from other banks, or they may require a longer check-clearing window.
Checks made out to cash are also risky. About.com acknowledges that writing a check payable to cash is convenient if the name of the check recipient is unknown. The danger, however, is that a check made out to cash is usable by anyone. If the check is lost, anyone who finds it can access the money unless there is a stop-payment request placed on the check. This request has a fee attached to it at most financial institutions.
About.com suggests simply leaving the payee line blank if the check recipient is unknown and then filling the line in once the name is discovered. This helps avoid any problems or delays in cashing the check.