We need some help, please. We have checks that were accepted via Mobile Deposit Capture and bear the restrictive endorsement "For Electronic Deposit at SoFi Money Only".

The check was also deposited at another FI, we are uncertain if is was paper or electronic. However, we are being hit with the dup presentment. Our processor (FIS) is claiming that the endorsement does not matter; it matters 'who got to the Fed first'. We have argued and argued to no avail. Are we responsible for this item? I thought the restrictive endorsement protected us. The other bank did not have one.

Thanks in advance.

Unfortunately, your processor is correct, because the Fed allows a paying bank to send back either item, regardless of which was presented first.

Is everyone enforcing the restrictive endorsement? Or do you reject and notify the customer if it is missing?