Guide to Mobile Check Deposit: 5 Things You Need to Know

Making a check payment is pretty effort intensive. Someone needs to take the time to write them or in case of personal computer checks, they need to be printed. Then the recipient needs to go all the way to the bank to have that check cashed. However, things have changed in recent times as the marvel of online banking has made check deposits simpler and faster.

Thanks to the mobile check deposit facility people don’t need to go to banks to deposit checks anymore. The technology is as simple as taking a snap of the check using your phone’s camera and sending it through to the bank using their online banking platform.

While this technology is more than a few years old, not all banks in America offer this facility. Local banks, especially, are lagging behind in terms of adopting this already matured innovation.

What Do You Need to Start Depositing Checks Using Your Mobile?

The popularity of this technology is all thanks to its inherent simplicity. All you need is a smartphone, the downloaded mobile banking app with check deposit feature, and a check that needs depositing. Considering most people have smartphones and the apps can be downloaded for free, this check deposit technology is pretty accessible.

Things You Need to Know About Electronic Check Deposit

It Saves You and the Bank Money: Depositing a check using a mobile banking app requires significantly less effort, not just on your part but also for the bank. When you go to the bank to deposit a check, it requires the attention of a salaried teller to process the check. Your bank saves that cost when you deposit a check electronically. In fact, most banks reward their customers by offering a cheaper check processing fee. So, it’s a win-win scenario.

Banks Take Pictures of Physically-Deposited Checks Anyways: When a check is deposited in a counter, bank executives scan the check to save a digital copy. When you send your check’s photo to the bank you are essentially doing the same thing. Once they receive the image, the bank sends the information using the same channels they would otherwise use to send scanned copies of physically-deposited checks.

The Images of the Checks Are Not Store on Your Phone: As a security measure, the image of the check clicked using the banking app is not stored on your phone’s local memory. This ensures the photo of the check, containing sensitive banking information, is not accidentally shared with someone else. This also protects the information if the phone is hacked or stolen.

Deposited Check Can Be Rejected: Just because you deposited the check doesn’t mean that you will receive the money. The check needs to pass all the usual tests to ensure it’s authentic. A check can be rejected due to insufficient fund even after the deposit is successful.

It’s Not a 24-Hours Facility: Most online check deposit facility is available only during the banking hours. This means a check can be put on hold if deposited after hours and cleared when the bank reopens.

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