Managing your savings and checking accountscan bea lot easier these days thanks to innovations like online and mobile banking. One of the newest tools that banks are rolling out is mobile deposit, which allows you to add money to your account by taking a picture of it with your smartphone.
While mobile deposit can be convenient, it’s not without certain drawbacks. SmartAsset takes a brief look at the potential disadvantages of using mobile deposit.
1. It Can Take Longer for Funds to Hit Your Account
Generally, when you deposit a check at the drive-thru or teller window, you can expect to see at least some of the money credited to your account that same day. When you deposit a check from your mobile device, it may take a little longer for your funds to become available based on what time of day the deposit was made. For example, mobile check deposits made after 6 p.m. Pacific time on business days to at least one major bank can’t be used untiltwo business days later.
Aside from the processing cutoff times, there are a few other things that can potentially affect how long it takes for the money to show up in your account. If you’re a new customer, you’ve racked up multiple overdraft charges, the deposit is for more than a certain dollar amount (say $50,000) or the bank believes that the check won’tbe honored, you may have to wait as long as a week for it to be verified before the deposit clears.
2. Some Banks Limit How Much You Can Deposit
Mobile deposit’s usefulness may only go so far if you’ve got multiple checks you need to deposit each month. Some banks require you to make your deposits at an ATM or in-person at a branch once you reach a certain number of transactions or a specific dollar amount.
Each bank sets its own policy on how much you can deposit from your mobile device and in some cases, it depends on how long you’ve been a customer. Truist, for instance, limits mobile check deposits to $1,000 per check and $3,000 per month if your account has been open for six months or less. At Citibank, the limit for new account holders is $500 per day or $1,500 per month.
3. You May Be Charged a Fee
While most banks offer mobile deposit services at no charge, others impose a small fee. At least one major bank charges a fee,currently set at $0.50 per transaction. You may have to pay a fee if you have an account at a smaller community bank or credit union, so it’s a good idea to read over your account agreement before you begin using mobile deposit. While it doesn’t seem like a lot, you could easily be nickel and diming yourself if you use mobile deposit on a regular basis.
4. Security Is Not 100% Guaranteed
Banks are more cautious than ever these days when it comes to protecting their customers’ information but there’s always the possibility that a cyber thief could get his or herhands on your account details if you use mobile deposit.
To minimize the risk, it’s a good idea toavoid storing your username or password in your phone’s app and only log in to mobile banking services using a secure connection. Something as simple as putting a lock code on your smartphone can keep a random stranger from accessing your account if your phone gets lost or stolen.
Final Word
If you don’t have time to stand in line at the bank, mobile deposit can bean efficient way to manage your money. Just be sure you’re clear on what your bank’s policies are before you start snapping away with your phone.
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FAQs
Even if a thief were able to grab your information in transit from your phone to the bank, the information is encrypted. The image of your check also isn't stored on your phone, so you don't have to worry about accidentally sending it to someone else later.
Is it safe to use mobile deposits? ›
Even if a thief were able to grab your information in transit from your phone to the bank, the information is encrypted. The image of your check also isn't stored on your phone, so you don't have to worry about accidentally sending it to someone else later.
Why is my mobile deposit negative? ›
A balance that is negative indicates that the deposits have been depleted and a top up to the account is needed.
Why would mobile deposit fail? ›
The system may automatically reject checks for any of the following reasons: The check image isn't readable. The check is folded or torn. The check isn't signed on the front or on the back.
What is the benefit of mobile deposit? ›
Mobile deposit gives you that increased flexibility in account management and processing. It'll help increase cash flow by helping you stay on track of your check deposits. No additional hardware is required for remote deposit. Most business banks offer this feature along with their online tools.
What is a unacceptable item for mobile deposit? ›
Unacceptable Deposits
Any item that contains evidence of alteration to the information on the check. Any item issued by a financial institution in a foreign country. Any items not payable in U.S. currency. Any item that is incomplete. Any item that is “stale dated” or “postdated”
What happens if you mobile deposit a fake check? ›
The bank will typically debit your account for the amount of the fake check, and may also charge you a processing fee. You'll lose any money you sent to the scammer.
What is negative about direct deposit? ›
Cons of Direct Deposit
Some banks even charge ongoing monthly fees. This is something you'll want to look into at your bank before set-up because that money really mounts up over time. In order for direct deposit to be available every payday, you must collect and keep track of time and attendance records.
How do banks verify mobile deposits? ›
Bank Verification Steps:
Capturing front and back images of the check: Clear images are crucial for bank verification. Transmission to the bank via secure internet connection: Ensuring safe and encrypted transmission.
Can a mobile deposit bounce? ›
Just like any regular bank deposit protocol, mobile deposits bounce when the check issuer doesn't have adequate money in their account to make the deposit. So keep in mind that, while you may receive a confirmation upon deposit, your bank has the right to reverse the funds even after sending confirmation.
So long as the mobile deposit status is “held for review,” you can delete the deposit. Simply tap on “Deposit” in the menu and the “View History” icon at the top right of the screen. Locate the deposit labeled “Held for Review,” and swipe left to delete it.
Why was my mobile deposit returned? ›
Common reasons for a returned deposit include: Non-sufficient Funds (NSF): The person or entity that issued the check doesn't have enough money in their account to cover the amount of the check. Closed Account: The check was written from an account that has since been closed.
Is it better to mobile deposit or ATM deposit a check? ›
Speed. Mobile phone banking generally affords you quick access to your funds than ATMs. Why? Because with ATM deposits, a banker may have to retrieve checks from the machine, then manually digitize them.
What is the difference between mobile deposit and check deposit? ›
Traditionally, you'd need to track down an ATM or visit your bank or credit union to deposit a check. But mobile deposit allows you to snap a picture of the check using your smartphone or tablet camera and upload it through your mobile banking app.
Should I endorse check for mobile deposit? ›
You can make deposits in a snap with your iPhone® or Android™ device. Due to a new banking regulation, all checks deposited via a mobile service must include: “For Mobile Deposit Only” handwritten below your signature in the endorsem*nt area on the back of the check or the deposit may be rejected.
Is it better to mobile deposit or ATM deposit? ›
Speed. Mobile phone banking generally affords you quick access to your funds than ATMs. Why? Because with ATM deposits, a banker may have to retrieve checks from the machine, then manually digitize them.
Is it better to mobile deposit a check? ›
In addition to the digital security these apps offer, they also safeguard your money against simple human error. When you use mobile deposit, you eliminate the need to carry a physical check around in your wallet or purse, which significantly reduces the chances of loss or theft.
Should I keep checks after mobile deposit? ›
It's a good idea to keep your check for 30 days or until you are sure that the full amount has posted to your account. After you have confirmed the deposited funds have been applied to your account correctly, destroy the check or mark it "VOID."
How to spot a fake check for mobile deposit? ›
What Are the Signs of Fake Check Scams?
- Irregular perforations.
- Missing check numbers.
- Incorrect routing codes.
- Odd magnetic ink character recognition (MICR) lines.
- Notations in the memo area.
- Stains or discolorations on the check.
- Other discrepancies.
