How to deposit a remotely created check

What should you ask your bank first?

• Do you accept remotely created checks from business customers?
• In which channels: teller, ATM, remote deposit?
• Are there limits on amount or volume?
• Is there legend wording you want in place of the signature?
• Do you require magnetic MICR toner?
• What hold applies to these deposits?

When you sign up for DraftPay, you confirm your bank accepts them and which channel you'll use. If you're not sure, we give you a short note to send your banker.

How do you endorse and deposit it?

Endorse it the way your bank asks for business deposits, then deposit it like any other check. For remote or mobile deposit, many banks require specific endorsement wording, so check their instructions.

Can you use mobile or remote deposit?

It depends on your bank. Some remote deposit agreements exclude remotely created checks, and some allow them. If yours doesn't, deposit at a teller or an ATM.

When is the money available?

The same as any other check you deposit. Your bank's funds availability policy applies, including any holds it places on large deposits or new accounts. The time you save is everything before the deposit: you can deposit the day your customer approves.

What if your customer uses Positive Pay?

Many businesses use Positive Pay, a bank service that compares each check presented against the checks they issued. A check draft you created isn't on their issued list, so it can show up as an exception, and their bank may return it unless they approve it.

Before the first draft, ask your customer whether they use Positive Pay and to approve the exception, or set up whatever their bank needs, when it appears.

What if a deposited draft comes back?

Returns happen for the same reasons as other checks, such as insufficient funds or a closed account, and also when a payer claims a draft wasn't authorized. What to do when a draft is returned.