What Happens If a Mobile Deposit Is Rejected?

Mobile deposits offer a convenient way to deposit checks without visiting a physical branch or ATM. This service allows individuals to use their smartphone camera to submit checks to their bank account. While efficient, a mobile deposit can be rejected by the financial institution. Understanding the reasons for rejections and the subsequent steps is important for managing personal finances.

Common Reasons for Rejection

Mobile deposits are often rejected due to image quality issues. If the image is blurry, too dark, or has glare, the bank’s system may be unable to properly read the check’s details. Similarly, if any part of the check, such as the routing number, account number, or amount, is cut off in the photo, the deposit will be denied.

Improper or missing endorsements on the back of the check also cause rejections. Most banks require the payee’s signature and a phrase like “For Mobile Deposit Only” written below the signature. Without these, or if the endorsement is not clearly visible, the bank cannot process the check. Depositing the same check more than once, whether accidentally or intentionally, will result in rejection.

Financial institutions also set limits on mobile deposits, both on a per-check basis and a daily or weekly aggregate amount. Attempting to deposit a check that exceeds these established limits will lead to its rejection. Checks that are stale-dated (typically over six months from the issue date), or post-dated (dated for a future time), are also commonly rejected. Issues with the receiving account, such as it being closed or frozen, will prevent successful deposits.

Notification of Rejection and Verification

When a mobile deposit is rejected, financial institutions notify the customer through various channels. Methods include in-app messages within the mobile banking application, an email, or a text message alert. These notifications indicate an unsuccessful deposit.

To understand the reason for the rejection, check your mobile banking app’s deposit history or transaction details. The app often provides a status update for the deposit, which may include an explanation for its denial. Reviewing any communications received from the bank, such as emails or secure messages, is also important as they often contain detailed information.

Steps Following a Rejection

After confirming a mobile deposit rejection and identifying the reason, address the specific issue. If the rejection was due to poor image quality, rephotograph the check under better lighting and on a flat, contrasting surface. For endorsement issues, properly endorse the check with the required signature and phrase before re-attempting the deposit.

If the problem was related to deposit limits, you might need to wait for the limits to reset or deposit a smaller portion of the funds. Re-attempt the mobile deposit once the issue has been corrected. If the issue persists or the reason for rejection is unclear, use an alternative deposit method, such as depositing the check at an ATM or visiting a bank branch. Contacting the bank’s customer service can provide clarity and assistance if the situation remains unresolved.

Preparing for Successful Mobile Deposits

Preparation is important for successful mobile deposits. Before capturing the image, place the check on a dark, flat surface with good, even lighting to minimize shadows and glare. The entire check, including all four corners, must be visible and in focus within the camera’s frame.

Proper endorsement is necessary: always sign the back of the check and write “For Mobile Deposit Only” below your signature. Verify the check’s validity by checking its date to ensure it is not stale-dated or post-dated. Before depositing, review your bank’s mobile deposit limits. These proactive steps help streamline the deposit process and reduce rejections.