People used to deposit cheques at a bank, but nowadays many of them (and businesses) do so from their phones. Mobile cheque deposits have transformed how businesses and individuals manage cheque payments, with 63% of bank account holders in the United States using mobile banking in 2024. This process is faster, more convenient, and accessible from virtually anywhere. Below, we’ll explain how a mobile cheque deposit works and why it’s become so important for banking.

What’s in this article?

• What is a mobile cheque deposit?
  
• How does a mobile cheque deposit work?
  
• What are the benefits of mobile cheque deposits for businesses?
  
• What security measures make mobile deposits safe?
  
• What are the limitations of mobile cheque deposits?
  

What is a mobile cheque deposit?

A mobile cheque deposit is when you use your smartphone or tablet to deposit a cheque into your bank account without having to visit a branch or ATM. You just take pictures of the front and back of the cheque through your bank’s app, follow the prompted steps, and submit the pictures for processing. It’s a convenient way to handle cheques on the go.

How does a mobile cheque deposit work?

Mobile cheque deposits go through your banking app. Each bank will have its own specific quirks and instructions but the process generally looks like this:

• Open your bank’s app and log in. Find the mobile deposit feature (usually right on the main menu or tucked under “Deposit”).

• Flip the cheque over and endorse it by signing your name. Many banks also want you to write “For mobile deposit only,” or there might be a box on the back to tick.

• Follow the instructions to take pictures of both sides of the cheque. Lay it flat on a clean surface, ensure there’s good lighting, and centre it in the frame so all four corners are visible.

• Type the cheque’s amount into the app where prompted, and select which account to deposit it into.

• Submit the deposit and wait for confirmation via pop-up message, email, or both. Keep the check for at least 14–30 days afterward in case your bank needs it for any reason. After that, shred it to avoid any security risks.

Banks typically process mobile deposits in one to two business days. Timing can vary depending on the cheque size, your account history, or the bank’s cutoff times. Larger cheques might have staggered availability, which means part of the money becomes available right away and the rest follows later.

What are the benefits of mobile cheque deposits for businesses?

Mobile cheque deposits can save time and effort for businesses and simplify recordkeeping and accounting. Here are the main benefits:

• Faster deposits: With mobile deposits, you can deposit a cheque into your account as soon as you have it, whether you’re at the office or travelling.

• Greater availability: Instead of letting cheques pile up or having someone take them to the bank, your team can deposit them from wherever they are. Similarly, you can handle business late at night, on the weekend, or whenever you have time.

• Easier process: Mobile deposits eliminate the need for deposit slips and bank visits. It’s a faster, easier process with fewer steps.

• More savings: Fewer trips to the bank mean less time and money spent on petrol, mileage, or couriers to handle deposits. If your business processes a large amount of cheques, mobile deposits can save you a lot of money over time.

• Better records: Every time you deposit a cheque, the app creates a time-stamped digital record with images of the cheque. That makes it easier to reconcile your books, pull reports, or handle an audit.

• Less fraud risk: The sooner you deposit a cheque, the less likely it is to get lost or stolen. Plus, banking apps typically authenticate the user’s identity before they’re able to log in and take any action.

What security measures make mobile deposits safe?

While no system is 100% immune to risks, mobile deposits have strong security measures that are constantly improving. When you combine them with good practices on your end – such as keeping your app up-to-date, avoiding public Wi-Fi for banking, and securing your devices – you can use mobile deposits with more peace of mind.

Here are some security measures that protect mobile deposits.

Encryption

The app encrypts all data transmitted during a mobile deposit, which means the data is scrambled into a secure format that’s nearly impossible for hackers to decode. This applies to both the cheque images and the personal or business account details you submit.

Authentication

Before you can access the mobile deposit feature, most banking apps require multifactor authentication. This means you’ll need another factor beyond a password to log in, such as a one-time code sent to your phone or biometrics (e.g., fingerprint, face ID).

Secure app design

Banking apps are built with layers of security to prevent unauthorised access. They use features such as:

• Time-out settings that log you out after a period of inactivity

• Restrictions that block the app on rooted or jailbroken devices, which are more vulnerable to attacks

Image validation

When you take a picture of your cheque, the app uses built-in technology to verify that the image is legitimate. It checks for tampering, duplicate submissions, and other signs of fraud before accepting the deposit.

Deposit limits and holds

Banks often set daily or monthly deposit limits and apply holds on large amounts until they verify the cheques. This reduces exposure to potential fraud or errors.

Endorsement verification

Many banks require you to write “For mobile deposit only” on the back of the cheque, which helps prevent the same cheque from being deposited elsewhere. Some apps even scan for this text as another layer of protection.

Fraud monitoring

Banks actively monitor mobile deposit activity for unusual patterns. If anything looks suspicious – for example, multiple deposits of the same cheque or deposits outside your usual behaviour – they’ll flag it and might contact you for confirmation.

Audit trails

Each mobile deposit generates a digital trail, complete with time stamps, cheque images, and deposit details. This creates a clear history to review in case of any disputes.

Device security

Mobile devices add another layer of protection. Features such as phone passcodes, biometric locks, and remote wipe capabilities ensure that your banking information stays secure even if your device is lost or stolen.

User permissions

Many apps allow you to set up user roles and permissions if multiple people manage deposits for your business. This adds another safeguard by allowing only authorised team members to deposit cheques.

What are the limitations of mobile cheque deposits?

Mobile cheque deposits are convenient, but they’re not without their challenges. Here are some of the limitations you’ll want to keep in mind.

Deposit limits

Most banks set daily or monthly caps on how much you can deposit through the app. If you’re handling large cheques or high volumes, you might hit those limits fast and have to make an in-person trip to the bank.

Photo quality requirements

If the cheque image isn’t perfect (too dark, blurry, or missing corners), the app might reject it. That can be a hurdle, especially if you’re trying to deposit on a tight schedule.

Cheque eligibility

Some cheques just can’t be deposited by phone (e.g., postdated cheques, foreign cheques, third-party cheques).

Fraud risk

While mobile deposits are secure, there’s always the risk of someone trying to deposit a cheque twice – once by phone and again in person.

Tech limitations

If your phone or tablet is outdated, if the app glitches, or if your internet connection is unstable, you could encounter issues. A bad camera, a buggy app, and a poor signal can all stop you from depositing cheques until you resolve the problem.