Mobile banking…what happens after I make the deposit and why don’t you need the actual check?
Today’s technology has turned our telephones into many things, but a bank teller? One of the most convenient services offered by financial institutions today is mobile check deposit. Snap a picture of your paper check with your smartphone camera, submit it to your bank and the funds are headed to your account.
Long gone are the days where you have to trek uphill both ways, in the snow to get to the bank, deliver the signed check and a paper deposit slip to the teller, and wait for it to hit your account in a day or two. Today you can deposit money from your desk, from your car, or from your couch. It’s like pressing the EASY button.
But really, have you ever thought about it? Wondered how it works behind the scenes? I know it’s not something that keeps you up at night, but curious minds want to know, so we’re taking a look.
There’s an app for that
Many financial institutions offer an app that allows you to access many of their services, including mobile check deposit. Choose the account you’d like the funds to be deposited, enter the total dollar amount of the check, take a picture of the front and back of your signed check, and submit. Your funds will typically be available in your account within 24 hours. C’mon, it doesn’t get better than that.
It’ll save us both a few bucks
Mobile check deposit is secure, fast, convenient and efficient– and isn’t that what we’re all looking for? From the institution’s perspective, it not only helps their customers, it also saves them money because it’s less labor-intensive. An in-branch check deposit typically costs a few dollars to process and a mobile check deposit costs only a few cents. That’s especially important in a credit union where profits are passed along to their members in the form of higher returns on savings accounts and lower interest rates on loans. Makes total ‘cents,’ right?
Typically when a paper check is presented to an institution, it’s put through a scanning device that takes a picture of the front and back of the endorsed check. Sound familiar? The picture, which includes all the data and the account information, is then sent electronically to the paying bank.
Your smartphone does the exact same thing during the mobile deposit process. It turns the paper check into an electronic image that can be forwarded to the appropriate institution for payment. The difference is that you’ve already created the image by the time the check is presented to your bank.
Check this off your list
The majority of people have the same question about mobile deposits: How long do I have to keep my deposited checks? It’s almost like they don’t believe in the magic of technology so they want to keep them for eternity—just in case. Honestly, there’s no need. Check with your financial institution, but generally, after 14 days and once you’ve confirmed that the correct dollar amount has been deposited into your account, you should be able to destroy your deposited checks.
Some checks do get rejected for poor photos or other missing information, so be sure to look for confirmation from the app that the deposit was accepted. You’ll also want to verify that it was credited to your account by using the app or by logging into your account online.
Let’s face it, life is busy. Mobile check deposit is just another service that can make your day a little easier. Not only does it offer additional convenience and save you some time, it might just save you a few bucks on gas, too!