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#2121993 - 03/15/17 12:45 PM Mobile Deposit
Yankees27 Offline
New Poster
Joined: Oct 2015
Posts: 10
We have always had the customer endorse the check "Mobile Deposit" on the back of the check to prevent redeposit at another institution. We just hired a new Operations Manager and he is stating that we do not have to have that on the back of the check. If that is the case how would you prevent double deposits? And if a check is deposited at two banks, who has the right to the funds?

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Operations Compliance
#2122191 - 03/16/17 01:03 PM Re: Mobile Deposit Yankees27
Christy Goza Offline
100 Club
Joined: Jun 2010
Posts: 118
Cleveland, TN
I think the requirement it an internal one for you. We have the same requirement. There may not be a regulation regarding it, but in my opinion it is a "best practice".

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#2122197 - 03/16/17 01:33 PM Re: Mobile Deposit Yankees27
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
The "right to the funds" question is still to be resolved -- the Fed proposed bringing RDC and mRDC images under Reg CC and setting up an indemnity in favor of a bank that takes the physical check for deposit if the check is charged back, but the Fed's been ridiculously slow in finalizing its proposal, which is almost 3 years old now.

For now, the "rule" -- it's really a consensus -- is that whichever depositary bank gets the RDC/mRDC image (or the check-image from a physical deposit of the check) to the paying bank first should be the winner. But in practice, a paying bank confronted with having paid the "check" twice will take the easiest path to recovering its loss. If the Fed handled the items, the paying bank can send back either item using the PAID adjustment entry, and that determines which depositary bank loses.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#2127770 - 04/24/17 08:30 PM Re: Mobile Deposit Yankees27
madukes Offline
Diamond Poster
Joined: Jul 2009
Posts: 1,459
Flyers Country
We have the same requirement however we accept the check whether they have that on the back or not. If one of our checks is paid twice we look at the 2 endorsements and generally adjust the mobile deposit item (so that bank is aware their customer is double dipping - we turn off mobile deposit accept for our double dippers). If the deposit dates are far apart we adjust the most recent. The fed leaves that up the bank submitting the PAID case.

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