What Does Mobile Deposit Prohibited Mean?

Mobile deposit has transformed banking by allowing individuals to deposit checks remotely using a smartphone camera. This feature offers convenience, eliminating the need to visit a physical bank branch or ATM. While generally seamless, instances where a mobile deposit is prohibited can arise, leading to confusion. Understanding why these rejections occur is important for account holders.

Common Reasons for Mobile Deposit Prohibition

Mobile deposit prohibitions often stem from issues with the check itself, account-specific restrictions, or security protocols. A frequent cause involves improper endorsement, such as a missing signature or the omission of “For Mobile Deposit Only” written below the signature on the back of the check. If there are multiple payees on a check, all payees may need to endorse it for the deposit to be accepted.

Checks with certain characteristics are commonly declined. This includes stale-dated checks, older than six months, or post-dated checks, intended for a future date. Banks also prohibit third-party checks, which are made out to one person and then endorsed over to another, due to increased fraud risk. Foreign checks, those issued by banks outside the United States or not in U.S. currency, are ineligible for mobile deposit. Checks that appear altered, incomplete, or contain information that does not match, such as the numerical and written amounts, will also be rejected.

Financial institutions implement daily, weekly, or monthly deposit limits, both in terms of dollar amount and the number of checks. Exceeding these limits will result in a mobile deposit being prohibited. Additionally, new bank accounts may have lower mobile deposit limits until a banking history is established.

Banks also maintain policies to prevent fraud and ensure security. A check that has already been deposited by any method will be rejected as a duplicate. If the bank suspects fraudulent activity related to the check or the account, or if the check itself is deemed non-negotiable or appears void, the deposit will be prohibited. Traveler’s checks, savings bonds, or credit card convenience checks are often ineligible for mobile deposit due to bank policy.

Technical issues during the mobile capture process can lead to rejection. Poor image quality, such as a blurry photo, insufficient lighting, shadows, or missing corners of the check, can prevent the bank’s system from reading information. An incorrect amount entered into the mobile app not matching the check is another technical reason for prohibition.

Next Steps After a Mobile Deposit Prohibition

First, review any bank notification, which often specifies the rejection reason. This may be an in-app error message or separate communication. Understanding the reason is important for resolution.

Next, examine the check for common problems. This includes proper endorsement, a current and legible date, correct payee information, and no damage like tears or folds. Correcting a simple oversight, like a missing signature, can resolve the problem.

If the mobile deposit remains prohibited or the reason is unclear, use alternative deposit methods. Most banks allow ATM or branch deposits. These methods can accommodate checks rejected by mobile deposit, especially those with minor issues or exceeding limits.

Contacting your bank’s customer service can clarify and resolve persistent issues. Representatives can provide rejection details and guide you to deposit funds. They can also confirm account restrictions or system issues.

Finally, familiarize yourself with your bank’s mobile deposit terms. These outline accepted check types, endorsement requirements, deposit limits, and rejected deposit procedures. Reviewing these terms helps prevent future prohibitions by ensuring compliance.