How to Mobile Deposit a Check With Your Smartphone

As money increasingly goes digital, with online-only banks and apps that allow money transfers in a few taps on a smartphone, customers have the option of handling paper checks by making a mobile deposit. Instead of using an ATM or a bank teller for deposits, institutions generally allow people to upload an image of a check using a mobile app.

“I suspect the banks would rather you do it this way,” says Scott Butler, financial planner with advisory firm Klauenberg Retirement Solutions in Laurel, Maryland. Mobile deposits are convenient for consumers and financial institutions alike. However, they only work if you follow your bank or credit union’s policies.

While there are some exceptions, depending on your bank, here’s how to deposit a check by phone:

Read on for more detail on what’s involved in each step to start depositing your checks by phone.

Mobile check deposits are typically handled through an app. If you haven’t already downloaded your bank’s app, you’ll need to do that before moving on to the next steps. Download it using a link from your bank’s website to ensure you have the official app and you’re using the latest version.

To prevent fraud, most banks limit the amount you can deposit digitally. “It’s not unusual for banks to have a limit of a few thousand dollars per day or per month,” says Christopher Maher, chairman and CEO of OceanFirst Bank in Toms River, New Jersey. These may range from $500 to $5,000 a day at many institutions, though some, like OceanFirst Bank, have no limit.

Processing times also vary by institution. For example, OceanFirst Bank holds most mobile deposits for one or two days before releasing the funds. However, deposits of more than $5,000 are held until the check clears, and customers receive a notification once the money is available.

Conversely, at Bryn Mawr Trust in Pennsylvania, there is a $3,500 deposit limit per day. “I think we’re one of the few places that allow our business customers to use the application (as well),” says Lindsay Saling, senior vice president and director of retail banking for Bryn Mawr Trust.

In the early days of mobile deposits, banks may have charged a fee for the service. However, it is now offered free at most institutions.

Once you’re sure that your check falls within your bank’s deposit limits, the next step is to endorse it.

Banks may have different rules about how to endorse checks. Some may require certain language, such as “for mobile deposit.” Most institutions will also not accept a mobile deposit of a third-party check that has been signed over to you, Maher says.

Correct endorsement language is important not only to deposit the check, but also to minimize the chance of a duplicate deposit. For example, one spouse might deposit the check using the mobile app, and another spouse may try to take it to the bank, not realizing it has already been deposited. In this situation, the bank should flag the duplicate transaction.

“Most check printing companies now have a box to indicate it’s a mobile deposit,” Saling says. Using this feature is another way to ensure a check isn’t taken to a branch after a mobile deposit.

The key to mobile deposits is taking clear photos. Customers can take photos within the app, which often provides a frame to line up the image. Some apps, such as the one offered by Bryn Mawr Trust, prompt customers to hover over the check while the app automatically captures the image. This feature eliminates the need to hold the phone steady while snapping a photo.

Keep in mind, making a mobile check deposit poses the same security and privacy risks as online banking, so you should take the same precautions you would employ for any other sensitive transaction. Don’t use public Wi-Fi, and snap photos in a private location.

Taking pictures is only one step in the mobile check deposit process. You’ll also need to enter your deposit amount, confirm the details and send the transaction to your bank or credit union. “We do see customers who don’t hit submit,” Saling says.

After you make the deposit, don’t toss the check right away. “It’s really important to keep the check for a few days,” Maher says. If there is a problem with the transaction, the bank may need to see the paper check. Potential issues include blurry images and excess deposits.

“There’s always the possibility that you enter the wrong number,” Butler says.

Once the funds are available and the check has cleared, you can dispose of it. “Ultimately, (people) should be using a shredder,” Butler says. You don’t want someone getting hold of your check and trying to cash it or deposit it.