When an order cheque is endorsed, it becomes a bearer cheque. A bearer cheque is a cheque that is payable to whoever holds the cheque, without the need for identification. Endorsing an order cheque means that the payee (the person named on the cheque) signs the back of the cheque, which transfers the right to receive payment to another person. The cheque then becomes payable to the bearer, meaning that whoever holds the cheque can receive payment.