Pros and Cons of Mobile Check Deposit

Pros and Cons of Mobile Check Deposit
If it seems like everyone you know is using a mobile app to deposit their checks in the bank, that’s probably because they are. According to a recent Bankrate survey, 72% of millennials and 52% of Americans 50 and older use mobile deposit. And when you consider that approximately 95% of Americans own a cell phone and almost 77% of those are smartphones, it’s safe to say that the popularity of mobile deposit will continue to climb. 

If you’re tired of depositing checks at the ATM or in a credit union branch, there’s never been a better time to embrace digital technology and try mobile deposit for yourself. But before you do, it’s helpful to understand the benefits—and the drawbacks—of mobile check deposits. (Although, we’re confident that after reviewing these lists, you’ll agree with us that the pros far outweigh the cons.)

Pros of Mobile Deposit

Anywhere, anytime convenience

If you’ve ever needed to deposit a check but glanced at your watch and realized you’d never make it to the bank or credit union before they close, this perk speaks for itself. With mobile deposit, you can snap a photo of your check and make that deposit whenever you want from wherever you are. No more mad dashes across town. No more extra trips to the ATM. With mobile deposit, it’s as easy as “Tap. Snap. Done.

User-friendly mobile apps

It wasn’t all that long ago that it would have been difficult to list ease-of-use as a benefit of mobile banking apps. Fortunately, most financial institutions have realized that offering seamless mobile interactions is a huge part of creating a positive member experience. As technology improved and app designers gained a better understanding of financial customer needs, mobile deposit apps have become more intuitive and easier to use. 

Practical security

Thanks to industry-standard encryption requirements, mobile banking apps provide a safe, reliable way for account holders to view and manage their money remotely. In addition to the digital security these apps offer, they also safeguard your money against simple human error. When you use mobile deposit, you eliminate the need to carry a physical check around in your wallet or purse, which significantly reduces the chances of loss or theft.

Cons of Mobile Deposit

Deposit amount caps

Although mobile deposit limits are intended to prevent financial fraud, they can be inconvenient nonetheless. While financial institutions have the freedom to establish their own rules and regulations, many credit unions limit mobile deposits to anywhere from $3,000 to $5,000 per day. If you deposit more than this amount in a single day, (first of all, good for you!) the funds may be accepted, but any amount over the daily limit may be subject to additional holds. 

Delayed fund availability

With text messaging, streaming music services, and on-demand Google searches, it’s safe to say that mobile technology has spoiled us a little. We’ve gotten used to instant gratification. And while mobile deposits offer immediate confirmation that deposited checks have been received, that doesn’t guarantee your funds will immediately available. Most credit unions have specific time frames for fund availability (i.e., Checks deposited before 12:00 PM EST will be available in your account the same day. Checks deposited after 12:00 PM but before 4:00 PM EST will be available in your account the following business day.)

At SC Telco, we’re proud to provide innovative solutions that make it easier to manage your finances. If you are an SC Telco member who would like mobile deposit instructions or additional information about the services available through our My Money Mobile app or MONEYLINKSM online banking, click here or visit your nearest branch to speak with one of our member service representatives. 

SC Telco

Federal Credit Union

SC Telco Federal Credit UnionSM is committed to improving the financial lives of the members we serve.

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