What Is Mobile Check Deposit?

The free lollipops are great, but who wants to add stopping by the bank to their to-do list? Now, many people deposit checks via their smartphones, using an app to snap a photo of the front and back of a check to add the funds to their bank account.

The genesis of mobile check deposits dates back to 2003 when Congress passed the Check Clearing for the 21st Century Act, which said a properly prepared reproduction of a check is the legal equivalent of the original check. Today, mobile check deposit apps are fast, safe and free. Read on to find out how to use them.

What is mobile check deposit?

Most banks and credit unions allow customers to deposit paper checks virtually using a mobile app on their smartphone or tablet, which scans the data on the check and adds the dollar amount to their bank account.

This deposit method can be used for most personal checks, business checks, cashier’s checks and government-issued checks, such as those used for tax refunds. Even though you don't physically hand the check to a bank teller for deposit, the funds will arrive in your account.

Some checks may not be eligible for mobile deposit — these include traveler's checks, checks from non-U.S. banks or third parties, money orders, checks payable in non-U.S. currency, savings bonds or promissory notes, and checks older than 180 days. However, some banks do allow mobile deposits of these types of checks.

Remember to contact your financial institution if you have questions.

How does mobile check deposit work?

Making a deposit can be as easy as tapping your phone to open the banking app and then taking a picture of the check. Here’s how to use a mobile app to easily deposit a check:

1. Download the app. First, you’ll need to download your bank or credit union’s app on your smartphone. Search your phone’s app store for your lender and find its official app. Be sure to read and understand your institution's rules for mobile check deposits.
2. Open the app and select mobile deposit. The buttons you’ll click may differ slightly from app to app, but the basics are the same. When you open your app, find a button that says “transfer,” “pay,” “mobile deposit” or something along those lines. When you click it, you’ll be asked to take a picture of the front and back of the check and then upload it.
3. Take requested photos. You should have the check in your hand and signed on the back. Place the check on a dark, non-reflective background in a well-lit room and remove any clutter surrounding the check. Hold your phone directly over the check and make sure the image of the check fits within the lines on the screen. Then, take a photo of the front of the check, and once the app accepts the image, flip over the check and repeat the process for the back.
4. Verify the check's information. The app may scan the dollar amount, dates and names, but you may have to type them yourself. Either way, double-check the details of the check before submitting it.
5. Keep your check until the deposit posts. Hold onto the check for several days after the deposit until you make sure it has been posted to your account, meaning it is no longer pending and any holds your bank or credit union has placed on it have expired. Once the check has been posted, destroy it completely by ripping, tearing or shredding it.

How do you endorse a check for mobile deposit?

Before you sign the back of a check for mobile deposit, confirm that all its details are accurate, including the names, addresses, payment amount and dates. Also, make sure it is not an old check (checks older than six months are not usually eligible for deposit).

When endorsing, ensure your signature is clear and above the required line, just as you would sign a check you would bring to a brick-and-mortar bank. Sign with a blue or black ink pen, not a pencil or marker.

You should also write “for mobile deposit only” above the line and below your signature.

Some banks may also require you to include the name of the institution (i.e., “for mobile deposit at [name of bank] only”). Call your bank or use the customer support section on the app to learn about its requirements.

Pros and cons of mobile check deposit

There are upsides of mobile check deposit —namely, convenience — but the drawbacks are worth noting as well:

Tips for using mobile check deposit

When making a mobile deposit, here are some tips to keep in mind to ensure the process goes smoothly:

• Connect to a trusted Wi-Fi network for banking. Rather than doing this business on your lunch break, wait until you’re back in the office or, better yet, at home (assuming your Wi-Fi there is secure).
• Save it in the correct format if uploading an image. Many banking apps will allow you to upload an image of the check rather than taking a fresh photo. While doing this, be sure you have saved your image as a .JPG/.JPEG file, not a .PDF, as that format is more commonly accepted by apps.
• Be aware of deposit limits. To discourage fraud, many banks don't allow users to virtually deposit money beyond a certain amount per day, week and/or month. If you want to exceed those limits, you may need to visit the bank in person.

Banks that offer mobile check deposit

Most major banks offer free mobile deposit services to their customers. This is not a comprehensive list, but it includes:

• Ally Bank
• Bank of America
• Capital One
• Chase Bank
• Citibank
• PNC Bank
• U.S. Bank
• Wells Fargo