What Is Mobile Deposit and How Does It Work?

What Is Mobile Deposit?

Mobile deposit is a feature that many banks and credit unions now offer through their smartphone or tablet apps. This option has become increasingly popular since it allows you to conveniently deposit a check into your checking or savings account from anywhere at any time, without having to visit a branch or ATM.

How Does Mobile Deposit Work?

Mobile check deposit works a little differently from other depositing methods. When you deposit a check at a branch or in an ATM, you hand over the physical check. Once you’ve endorsed a check by signing on the back, here’s how to complete a mobile deposit:

1. Download the Banking App

If your bank or credit union offers mobile deposit but you don’t have their app, download it on your phone or tablet from your device’s app store.

2. Log In and Get Started

Whether you already have an online account with your financial institution or just set one up, log in to the app on your phone or tablet. Then navigate to the mobile check deposit section. It may be displayed on the main screen or deposit page. If you run into issues, look for a help section or contact customer service.

3. Input Check Information

Most apps start the mobile deposit process by requesting that you manually input the check amount. You will also select which account the check should be deposited into (if you have more than one account with the institution).

4. Take Photos

The app will then direct you to take photos of the check’s front and back. You won’t use your phone’s regular camera tool for this; you’ll be guided to do it directly through the app, with help on properly positioning the check.

Some apps take the photo automatically once the check is in the correct position. Don’t forget to endorse the check with a signature on the back before photographing that side. You also may be required to write “For mobile deposit only” on the back; follow your bank’s instructions carefully to avoid issues.

5. Review and Submit

After taking photos, you’ll be asked to review the deposit details and images to confirm everything looks correct. If all is accurate, you’re ready to submit the deposit.

6. Save the Check and Wait for Funds to Clear

Be aware that the money doesn’t show up in your account immediately—most funds are available in one to two business days—so making purchases right away puts you at risk of an overdraft.

Also, don’t throw the check away as soon as you make the deposit. Banks and credit unions require that you hang on to it until the check clears in case there are any issues with the images or funds.

Pros and Cons of Mobile Deposit

Should you or shouldn’t you try mobile deposit? Consider these potential upsides and downsides to depositing a check this way.

Pros

• No need to leave the house: There’s no need to visit an ATM or bank branch, and it’s hard to beat depositing a check from your desk or couch.
• No time restrictions: If you’re used to depositing checks at a bank branch, you have to go during their business hours. This doesn’t work for everyone’s schedule. Mobile check deposit is available 24/7.

Cons

• Waiting period: The mobile deposit process is quick and easy, but money isn’t added immediately since there’s still the chance the check could bounce. ATM and in-branch deposits typically give you a small amount immediately, but with mobile deposits, you may have to wait one or two business days for any money to hit your account (sometimes longer depending on certain factors).
• Digital safety concerns: If you deposit your check on a free or public Wi-Fi network, your private financial information is vulnerable to hackers. To avoid these issues, it’s ideal to deposit checks on your home network or another secured one. On top of that, this option may not be friendly for those who aren’t very digitally savvy.
• Possible limitations: Some banks and credit unions limit which types of checks can be accepted via mobile deposit. For example, you might not be able to deposit a foreign check, money order or third-party check this way. Financial institutions may also limit how much you can deposit via mobile check deposit in one month.

ATM Deposit vs. Mobile Deposit

Some ATMs are configured to accept check deposits, but there are some differences in how depositing works when using an ATM compared to a mobile app.

If you go the ATM route, you must find an ATM that accepts deposits and ideally is in-network for your financial institution (bank and credit union websites typically have locators). After finding an eligible one, you have to physically go there, and depending on the financial institution, there may or may not be after-hours access. On the plus side, check deposits at ATMs often will allow you to access a small amount right away, with the rest clearing the next business day.

Mobile check depositing is far more convenient, but funds typically aren’t available until the next business day at the very soonest.

Is Mobile Deposit Safe?

Mobile check deposit is considered just as safe as other types of check depositing or mobile banking, and you play a big role in keeping your information secure. Enhance the security of mobile deposits with measures such as:

• Using strong passwords for your mobile banking apps
• Ensuring nobody has access who shouldn’t, like an a relative who isn’t great with money
• Avoiding use of banking apps on unsecured free or public Wi-Fi networks, where hackers may be able to access your private information
• Regularly monitoring your account to ensure there are no unauthorized transactions
• Reporting to your bank immediately if your phone is lost or stolen, or if you see unauthorized account activity

How Long Does Mobile Check Deposit Take?

Money deposited via mobile check deposit is not available immediately; the bank still must clear the check. Typically, most of your funds are available the next business day. By law, at least $225 of your funds must be available the next business day, with the rest processing over the next day or two. Banks are more likely to place these longer holds if the check is large or if you’re a new customer and have limited transaction history with them.

If you make a deposit on a weekend or holiday, or after-hours on a business day, you’ll typically have to wait one business day for check processing, with the funds available the following business day.

Tips for Using Mobile Deposit

If you’re just dipping your toe in the world of mobile check depositing, here are some helpful tips:

• Follow photo instructions carefully. While your app will likely guide you on how to take the best photos and can initially approve them, poor images can later result in the rejection of your deposit and require you to deposit it again or bring it to a branch. For the best photos, put the check on a dark, flat background and make sure you have good lighting. Hold your phone or tablet directly over the check rather than at an angle and ensure all four corners are visible.
• Don’t throw the check away immediately. After you finish depositing your check in the app, set it aside somewhere securely until you’re notified it has been fully processed and deposited (or see the funds show up as available in your account). Your bank will likely tell you how long to hold onto the check before destroying it—typically a week.
• Destroy the check securely. Once you’re notified or see in your account that the check has cleared, you can destroy it, but do so with caution. Checks might contain personal information for you or the check-writer, like bank account numbers. It’s ideal to shred the check or cut it up before tossing it out.

The Bottom Line

Mobile check deposits offer unparalleled inconvenience; forget hunting down an ATM or waiting in teller drive-through lines. You don’t have to leave your house to put a check in your account, and you can do it any time of day or night.