What Is a Mobile Deposit?

Fact checked by Brendan Harkness

What Is a Mobile Deposit?

Mobile deposit, also known as mobile check deposit, is a digital way to deposit paper checks into your checking or savings account using your smartphone or other mobile device, such as a tablet. It’s a safe and secure way to deposit a check without having to trek to your local bank branch or ATM. Plus, you can use mobile deposit 24/7 from anywhere you have cell service or WiFi—though it’s best to avoid online banking on a public WiFi network to keep your information secure.

You can use mobile deposit for most paper checks, including personal checks, business checks, and government-issued checks. If you need to deposit an international check or money order, contact your bank to see whether it allows mobile deposit for these types of checks. 

Key Takeaways

• Mobile deposit makes it easy to deposit a check into your bank account using your smartphone or other mobile device.
• To use mobile deposit, you’ll have to endorse the back of the check with your signature and, in some cases, some variation of the phrase “For mobile deposit only.” 
• Banks use encryption and security technology to keep your mobile banking information safe, though banking on public WiFi can be risky. 
• Funds from a mobile check deposit are usually available in your bank account the next business day.

How Mobile Deposit Works

Mobile check deposit uses remote deposit capture technology to deposit the check funds into your bank account. This tool lets banks accept deposits using electronic images of the front and back of a check instead of requiring the original paper check to be physically deposited at a branch or ATM.

The process of making a mobile deposit can differ between financial institutions, but you’ll typically follow these steps:

1. Download your bank’s mobile app and set up your account.
2. Look for the “deposit” or “mobile deposit” option.
3. Sign the back of your check and write “For mobile deposit only” beneath your signature. Some banks may ask for a slightly different phrase, so check your bank’s requirements before writing on your check. 
4. Select the account you wish to deposit the check into and fill in the amount (sometimes this is done after the next step). 
5. Use your device’s camera to take photos of the front and back of the check, ideally on a dark background. 
6. Review the check details (amount and account) and select the option to deposit the check.

After you’ve submitted your mobile deposit, the app will transmit the information to your bank and you should see a confirmation message. Depending on when you deposit the check, it might take a business day or two for the funds to become available in your account. 

It’s a good idea to hold onto your physical check until you see the funds clear in your account. For example, Wells Fargo recommends keeping your check for five days after your mobile deposit.

Pros and Cons of Mobile Deposits

In most cases, the advantages tend to outweigh the disadvantages of mobile check deposits.

Pros

• Convenience and flexibility

• Safety and security

• Fast access to funds

Cons

• Check could still bounce

• Risky to use on free or public WiFi

• Must endorse the check correctly

Pros

• Convenience and flexibility: Mobile deposit is a convenient way to deposit a check—it works anytime, anywhere you have access to the internet, and you don’t have to go to your bank in person. 
• Safety and security: Banks use (or should use) the proper encryption and security technology to keep your information safe. 
• Fast access to funds: Most banks can clear your funds by the next business day. 

Cons

• Check could still bounce: Even if your banking app confirms that you deposited the check, it’s possible that your bank could reverse the deposit due to insufficient funds in the payer’s account or another issue. You may also be charged a bounced check fee in the process. 
• Risky to use on free or public WiFi: Using online banking on a public internet network can make you vulnerable to hackers, who might be able to access your account. It’s a good idea to only use mobile deposit on trusted networks. 
• Must endorse the check correctly: Along with signing your name, you’ll have to follow your bank’s rules for correctly endorsing your check. For example, PNC asks you to write “For PNC Mobile Deposit Only” beneath your signature (although these requirements may not always be strictly enforced).

Frequently Asked Questions (FAQs)

Are Mobile Check Deposits Safe?

Mobile check deposits are generally safe, since banks use encryption and security technology to protect your information. However, signing into your banking app on public WiFi could compromise your security, so it’s a good idea to only use mobile deposit on a trusted network. 

What Banks Offer Mobile Check Deposit?

Many banks offer mobile check deposit, including Ally Bank, Bank of America, Capital One, Chase, Citibank, Discover, PNC Bank, U.S. Bank, and Wells Fargo.

What Should I Write on the Back of a Check for Mobile Deposit?

You should sign your name on the back of a check—a process known as endorsing the check—before using mobile deposit. Below your signature, you should also write something like “For mobile deposit only.” Depending on your bank’s guidelines, you may be instructed to include the institution’s name.

How Soon Are Funds Available With a Mobile Deposit?

Funds from a mobile check deposit are often available in your bank account the next business day. However, the time it takes a check to clear varies depending on your institution and when you deposit the check. For example, if you deposit a check on a weekend at Wells Fargo, the funds will become available on Tuesday.

What’s the Difference Between Mobile Deposit and ATM Deposit?

Mobile deposit involves depositing a check through your bank’s app on your smartphone or other mobile device. You can use mobile deposit anywhere you have access to the internet. 

ATM deposit involves depositing a check in person at one of your bank’s ATMs. When you deposit a check at an ATM, you’ll insert your bank card, enter your personal identification number (PIN), choose the “check deposit” option, and insert your endorsed check into the machine. 

The Bottom Line

Mobile deposit is an easy, convenient, and secure way to deposit checks into your bank account without having to visit a bank branch in person. Before depositing a check with your mobile device, look up your bank’s guidelines for endorsing the check so you know what to write on the back under your signature. 

Avoid using mobile deposit on public WiFi networks to keep your information secure, and hold onto your check for a few days after depositing it to make sure the transaction clears. As long as you follow these general guidelines, mobile check deposit can be a painless and flexible way to deposit a check into your checking or savings account.

Read the original article on Investopedia.