What Is an RDC Deposit and How Does It Work?

Remote Deposit Capture (RDC) offers a convenient method for depositing checks. This technology uses digital imaging to transmit check information to your bank, eliminating the need to visit a physical branch or ATM.

What is Remote Deposit Capture?

RDC allows you to deposit checks into your bank account using a digital device. This typically involves using a smartphone camera or a desktop scanner to capture images of a check. The captured images and associated data are then securely transmitted to your financial institution.

RDC converts a physical check into an electronic transaction. This process bypasses manual handling and transportation of paper checks, reducing processing time. Users benefit from convenience, saving time, and the flexibility to deposit funds from any location with internet access.

How to Successfully Make an RDC Deposit

Making an RDC deposit requires attention to preparatory steps and the banking application’s procedure. First, properly endorse the check. Most financial institutions require you to sign the back and write “For Mobile Deposit Only” below your signature. Some checks may also have a checkbox for mobile deposit, which should be marked.

Once the check is endorsed, prepare for image capture by ensuring the check is placed on a flat, dark, and well-lit surface, free from shadows or obstructions. Then, open your mobile banking application and navigate to the deposit feature. You will typically be prompted to select the account where the funds should be deposited. The application will then guide you to take clear, focused images of both the front and back of the endorsed check, ensuring all four corners are visible and the image is not blurry. After capturing the images, accurately enter the exact amount of the check into the app. Finally, review all the entered details, including the amount and account, before submitting the deposit for processing.

Essential Considerations for RDC Deposits

Users should be aware of several considerations for RDC deposits. Financial institutions impose deposit limits, which vary by bank and account type, such as daily, weekly, or per-check maximums. For example, daily limits can range from a few thousand dollars for personal accounts to no limits for some business accounts. Always check your bank’s specific policies.

Funds from RDC deposits are generally made available faster than traditional paper check deposits, often within one to two business days. However, availability timelines can vary based on factors such as the deposit time, the amount, and your bank’s specific funds availability policy, which is governed by regulations like Regulation CC. Banks may place holds on deposits, especially for new accounts or larger amounts, to mitigate fraud risks.

Security is important for mobile banking. It is recommended to secure your mobile device with a password and auto-lock feature, avoid sharing login credentials, and use secure Wi-Fi networks when making deposits. Keeping your banking application updated ensures you benefit from the latest security enhancements, including encryption and multifactor authentication. After a successful deposit, it is important to retain the physical check for a specified period, typically ranging from 14 to 60 days, in a secure location. After this retention period, the check should be marked “VOID” and securely shredded to protect your personal information. Common issues like poor image quality or incorrect amounts can lead to deposit rejections, so careful attention to detail during the process is important.