What to Do When a Mobile Check Deposit Gets Rejected by Bank

If your mobile check deposit gets rejected by your bank, don't panic - it's not the end of the world.

You can try resubmitting the deposit, but it's essential to understand why it was rejected in the first place. According to the bank's guidelines, a rejected deposit may be due to an insufficient account balance, an incorrect deposit amount, or a problem with the check itself.

Make sure the check is valid and not postdated, as this can be a common reason for rejection.

The bank may also reject a deposit if the check is damaged or has been altered in any way.

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If your mobile check deposit gets rejected, it's frustrating. One common reason is that the check lacks an endorsement (signature).

Make sure the check has a valid signature from the payee before trying to deposit it. I've seen people forget to sign the back of the check, which leads to rejection.

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Another reason is that there are multiple payees listed on the check. This can cause issues with the deposit process.

If you're trying to deposit a check with multiple payees, you might need to contact the bank for assistance.

Some people have also experienced rejection due to unclear or too dark images. This can make it difficult for the bank's system to read the check.

Make sure the images are clear and well-lit before submitting them for deposit.

The amounts on the check must also match. If they don't, your deposit will be rejected.

Double-check the amounts on the check to ensure they match.

In some cases, the check has already been deposited previously (duplicate deposit), which can cause rejection.

Check with the bank to see if the check has been deposited before.

Finally, a damaged or torn check can also lead to rejection.

Be careful when handling checks to avoid damage or tears.

If a cheque deposit is rejected by the bank, you should not record it as a 'Named Donation' or 'Invoice Payment'. Instead, select 'Other Income' to avoid it showing up as a donation and being eligible for Gift Aid or incorrectly showing as paid.

To correct the bank deposit, reopen the deposit, delete the line for the rejected cheque from the 'Named Donation' or 'Invoice Payment' section, and add it to the 'Other Income' section. This will ensure the transaction is accurately reflected in your records.

When the bank rejects a cheque, it will show as an outgoing amount on your bank statement. To bank match this transaction, select it in the left-hand table on the bank matching screen, click the + button that appears, and select the 'Income Repayment' option. This will create a negative income that correctly nets out with the corresponding income amount.

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Incorrect routing or account number is a common reason for check deposit rejection. This can happen if the client has entered the information incorrectly.

Consult with the client to ensure they have provided accurate information, just like the bank does. This can often resolve the issue and allow the deposit to go through.

No Payee Indicated can be a major issue when trying to deposit a check. If the Paid to the Order of line is blank, you won't be able to deposit the check.

This is because the bank needs to know who the check is made out to, and a blank line doesn't provide that information.

In fact, leaving the payee line blank is one of the common reasons for check deposit rejection. If you're trying to deposit a check with a blank payee line, you'll need to go back and fill it in before you can proceed.

Here are some reasons why a blank payee line might be a problem:

It's worth noting that the payee line is a crucial area of information that needs to be filled in before you can deposit a check.

If your cheque deposit gets rejected, it's usually due to a simple issue that can be easily fixed. The bank may reject the deposit if the check lacks an endorsement (signature), or if there are multiple payees listed on the check.

You can try to resubmit the deposit with the necessary corrections. If the images are unclear or too dark, you may need to retake the photos. And if the amounts on the check don't correspond, you'll need to correct the discrepancy.

Sometimes, the bank may reject the deposit because the check has already been deposited previously (duplicate deposit). In this case, you'll need to contact the bank to resolve the issue.

If the check is in damaged or torn condition, it's likely to be rejected. You may need to obtain a replacement check from the issuer.

Here are some common reasons why your cheque deposit might be rejected:

If you've already deposited the cheque and it's been rejected, you'll need to correct the bank deposit. This usually involves deleting the line for the cheque from the 'Named Donation' or 'Invoice Payment' section and adding it to the 'Other Income' section.

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If a client or customer has insufficient funds, the bank may mark the account as NSF and reject a payment preemptively. This can result in a bounced check with additional fees.

A bank may reject a deposit due to insufficient funds in the depositor's account. Discrepancies in the provided account details can also cause a deposit to be rejected.

A hold or freeze on the account can prevent a deposit from being accepted and credited. Suspicious activity triggering security measures can also lead to a deposit being rejected.

Insufficient funds can be a real headache. If a client or customer has insufficient funds, the bank may mark the account as NSF and reject a payment preemptively.

This means that even if the payment is initially accepted, it will be rejected later, resulting in a bounced check with additional fees. In some cases, the bank may reject a transaction completely to reduce the risk of the merchant sweeping the account entirely.

Bounced checks can lead to more fees and penalties, so it's essential to keep track of your account balance. If you're expecting a payment, make sure to check your balance before attempting a transaction.

A bank may also reject a transaction if it's not secure, such as if there's a hold or freeze on the account, or if there are discrepancies in the provided account details.

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If the customer address entered doesn't match the address their bank has on file, it can lead to issues with payment processing.

A bank that cannot confirm the address may reject or chargeback a payment, which can be frustrating for both the customer and the business.

It's essential to verify the address with the customer before submitting a payment to avoid any potential problems.

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A check made to a name that doesn't match the account holder can be a common reason for a rejected deposit. This can happen if the check is made to a personal account in a business name, or vice versa.

If a check is made to a DBA (Doing Business As) name that isn't registered to the business account, it will likely be rejected. I've seen this happen to friends who own small businesses and try to deposit checks made out to their business name.

A check made to a name not on the account is a clear indication that the deposit will be rejected. This can be frustrating, especially if you're expecting a deposit to clear quickly.

Here are some examples of checks that may be rejected due to a mismatch in names:

A check made to a name not on the account can be a simple mistake, but it's always best to double-check the name on the check before depositing it.

Savings accounts can be a bit tricky when it comes to making payments. Many savings accounts prohibit check payments, and could either place holds or reject payments completely.

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Some savings accounts may not allow you to link them to other accounts for payments, which can limit your flexibility. This can be frustrating if you're used to paying bills from your savings account.

Savings accounts often have lower or no fees for certain transactions, but these can vary from bank to bank. It's essential to review your account terms before making any payments.

Placing a hold on a savings account can temporarily lock up your funds, which can be a problem if you need access to that money. This is why it's crucial to check your account's policies before making a payment.

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Bank Risk-Mitigation is a crucial aspect to consider when dealing with a check rejected by a bank. There may be other risk factors and protocols at either the bank being debited or the bank receiving funds.

These factors vary, bank-by-bank, and many protocols may be automated by their system. Reaching out to your bank for more information is advisable if you're unsure about their specific risk-mitigation measures.

It's essential to note that some banks have unique risk-mitigation procedures that may impact the processing of checks. Reaching out to your bank is the best way to get specific information about their risk-mitigation protocols.