Last week, USA TODAY published a consumer-focused article explaining new deposit requirements from a number of banks:
Depositors must now include the phrase “For Mobile Deposit Only” underneath their signature on all checks deposited using mobile apps. Some banks are also suggesting you add “For Mobile Deposit Only at (Bank Name)” or “For (BANK NAME) Mobile Deposit Only.”
It applies to all mobile deposits at all financial institutions, such as PNC Bank, Capital One and Legend Bank in Texas.
Without the inclusion of the new phrase, banks say the check will be returned with the notification that your “deposit was rejected due to restrictive endorsement.”
This kind of “getting the word out” is good news for financial institutions that are finding that more and more of their customers deposit checks via mobile and self service devices.
“It’s great to see that some of the predictions prior to the new restrictive endorsement rules are coming into fruition,” stated Joe Gregory, Vice President of Marketing.
The article confirms that highly advanced restrictive endorsement detection helps financial institutions to protect themselves and their customers against risk of fraud via mobile deposit alternatives that consumers demonstrably prefer. While there are bound to be bumps along the way, the new restrictive endorsement rules are great news for the industry in terms of securing deposits. Hats off to USA TODAY for educating consumers!