Understanding the Difference Between a Medallion Stamp and an Embosser

As a notary public, it is essential to understand the tools of the trade and how they differ. Two commonly confused items are the medallion stamp and the embosser. While both are used to authenticate documents, they serve different purposes and are used in distinct circumstances. Let's explore the key differences between these two important tools.

What is a Medallion Stamp?

A medallion stamp, often referred to as a medallion signature guarantee, is a specialized certification used primarily in financial and securities transactions. It is issued by financial institutions such as banks, credit unions, and brokerage firms, and serves to verify the legitimacy of a signature on securities-related documents, such as stock transfers or bond assignments.

Key Features of a Medallion Stamp:

• Purpose: Ensures the authenticity of signatures for securities transactions.

• Issuers: Only financial institutions authorized by the Securities and Exchange Commission (SEC) or other regulatory bodies.

• Security: Includes special ink and intricate designs to prevent fraud.

• Liability: The issuing institution assumes financial liability for the authenticity of the signature.

• Common Uses: Stock transfers, mutual fund transactions, and changes in account ownership.

It is important to note that notaries do not provide medallion signature guarantees; they are strictly issued by financial institutions that are members of specific guarantee programs.

What is an Embosser?

An embosser is a device used by notaries to create a raised, embossed impression on paper to authenticate notarized documents. It is a traditional tool used in conjunction with or as an alternative to an ink notary seal.

Key Features of an Embosser:

• Purpose: Verifies the authenticity of notarized documents by creating a physical impression.

• Issuers: Used by notaries public in their official capacity.

• Appearance: Produces a raised imprint that may include the notary's name, commission number, and state of commission.

• Security: Harder to forge due to the physical indentation on the document.

• Common Uses: Real estate transactions, legal documents, affidavits, and other official paperwork requiring notarization.

Unlike a medallion stamp, an embosser does not provide a financial guarantee but serves as a mark of authenticity for notarized documents.

Understanding the difference between a medallion stamp and an embosser is crucial for notaries to properly advise their clients and ensure the appropriate certification is used for each situation. While a medallion stamp guarantees financial transactions, an embosser authenticates the notary's role in verifying documents. Always be sure to refer clients to the appropriate entity when a medallion signature guarantee is required and confidently use your embosser to provide secure notarization services.