When people eventually only require a small amount of money for daily necessities, they store additional money in banks. People who deposit money in banks receive significant interest on their investment and their money is kept safe. Also, they have unlimited access to cash withdrawals. The majority of people keep their money in bank deposits, mostly in money market, checking, and savings accounts. Businesses do the same, and they do it more.
Is there a quicker way for your company to deposit checks? The response is affirmative – a mobile check deposit can be the ideal choice for you. A 2022 study from Mitek Systems states that last year, almost 88% of Americans used a smartphone or tablet to access their bank account, and 53% of them used those devices to deposit one or more checks. Even though this is something mostly used by younger folks, PaymentsJournal reports that 32% of people aged 55-64 use mobile deposits in general very often.
Nevertheless, compared to other online banking services like wire transfers, ACH, and credit and debit card payments, mobile check deposit isn’t quite as common as cash deposit. Still, it’s a practical choice for company owners who have several checks to deposit. There are even mobile apps – e.g. iWallet, Ingo Money App, etc. – that help you make use of those deposited checks for further depositing when you need them: to buy a product or a service or for gambling purposes perhaps for which you can find the best-rated iWallet online casinos in 2023 at TopCasinoExpert.
We’ll go over what mobile check deposit is, how it operates, and why small business owners should use it in this post.
What’s a Check Deposit via Mobile Device?
With the use of mobile check deposit, you can deposit check money directly into your account without going to a physical bank.
With this type of check deposit, you can deposit a paper check into your company bank account whenever you want to use your mobile device. Generally, you can deposit the money into a savings or checking account.
Businesses can deposit money into their accounts more quickly, simply, and securely by using mobile banking services like ACH and check deposit. Additionally, they allow small businesses to handle their cash flow and deposits on their own schedule, rather than having to rush to the bank by 5 p.m. every day.
In the end, mobile deposits allow you to deposit money from your iPhone or Android device directly into your company checking account, saving you the trip to the bank. You may access your money at any time, from any location, with this kind of convenience, whether you’re at the office or the beach.
How Do Check Deposits Made with a Mobile Device Work?
With your mobile banking app, you may usually access mobile check deposit services.
Check images are scanned for mobile deposits using a technology known as remote capture. The image will be used by your bank or other financial institution to complete the check deposit process and credit your account with the proceeds.
Can Mobile Check Deposits Be Used by Businesses?
Every day, more than 100,000 checks are deposited using mobile devices, according to a recent Wall Street Journal story. Mobile check deposit abilities are undoubtedly something that businesses can (and should) use to save time and enhance cash flow management.
You must first have a business online banking account in order to mobile deposit a business check. Next, confirm with your bank that business customers can make mobile deposits. You can upload a scanned copy of your check and enter the deposit data after you’ve confirmed that your bank provides the service.
To open several no-fee company checking and savings accounts, business owners can use Internet services or apps created especially for this purpose. Checks can then be mobile deposited, ACH payments can be sent and received, and more.
Advantages of Check Depositing via Smartphone
If you need to deposit a lot of checks, business mobile deposit can be an excellent choice. Assume for the moment that you get regular check payments from clients or consumers. It would be inconvenient to make several journeys to the bank each week.
Paper checks can be dangerous and difficult to track down; if they get stolen or lost, there may be serious security risks. Here are some other advantages of mobile check deposit for companies:
Quicker cash availability: A regular bank deposit takes longer than a remote deposit. After making the mobile deposit, you can get access to your money right away, contingent upon the amount of the check and your bank.
Security: Your mobile banking application is used to deposit checks, and your data is encrypted. Additionally, mobile deposit enables you to safely store checks at home or work rather than having to drive to and from the bank, where you run the risk of losing or having them stolen.
Ease of use: With only a few fast touches, you can deposit several checks into your business account. Besides, you can complete it without having to stand in line at the bank—in the convenience of your own home.
Accounting: You can retain the paper check for your records, but you can use remote capture to send an image of the check to your bank. It’s also possible that your banking platform or accounting software will let you attach an image to the transaction.
Drawbacks That Could Arise with Mobile Check Deposit
Businesses can benefit greatly from mobile check deposits, but there are certain restrictions. Here are two typical, crucial ones to remember:
Limits for deposit: The restrictions for mobile check deposits could differ between banks. Before attempting a mobile deposit if you have many checks to deposit, you might want to check your bank’s rules.
Commissions: While some banks may charge a fee for these online services, others may offer mobile deposits at no cost.
Despite the convenience of mobile check deposits, handling paper checks still requires you to take additional risks compared to digital payment options.
In the end, your company may decide to completely discontinue accepting checks. In contrast to checks, payment mechanisms like ACH, wire transfers, and credit cards can enable firms to access payments more quickly.
How to Use Check Deposits via Mobile Devices for Your Company
The procedure for depositing checks using a mobile device may differ among financial institutions. Before you start, it’s a good idea to check your bank’s mobile deposit policy.
Additionally, you should download the mobile app for your bank from the Google Play or Apple stores. Following that, you can usually use your mobile device to deposit a check by following these steps:
Step 1: Access your business banking account by logging in to your bank’s mobile app.
Step 2: Click or select the deposit check link.
Step 3: A prompt to enter the details of the deposit, such as the date and amount, may appear. Additionally, you’ll need to select a deposit account, such as a money market or checking account.
Step 4: After that, you must sign your company’s name or the payee’s name on the reverse of the check.
Step 5: Take pictures of both the front and back of the check with your phone. When utilizing the check scanner, make sure the check is displayed in all four corners and that the routing code is visible.
Never forget that keeping the paper check for your records is always a smart idea in case something goes wrong with your deposit.
