Mobile Check Deposit allows customers to deposit physical checks by capturing images of the check and submitting them digitally.

The system processes these deposits through a series of automated and manual checks to ensure:

Image quality and compliance
Check authenticity
Fraud prevention
Successful bank clearing

How It Works

Customer captures check images (front & back) and enters the deposit amount.
Client app sends a request to PCE's Create Transaction API with images and optional metadata.
Next checks are forwarded for Image Quality Assessment (IQA) and endorsement (~2-5 seconds):
1. Image Quality Assessment (IQA):
  1. Check the image clarity, Check 21 compliance, MICR visibility
  2. Extract amount, account, routing, and check number
2. Endorsement:
  1. If vendor endorsement (default) → the system electronically endorses the checks,
  2. If you want to enable customer-endorsement or prefer your electronic endorsement → the checks submitted should be endorsed by you. Priority System will skip the check endorsement step.
In case of

Transactions may go through manual review (if required)
Approved checks are sent to the bank for clearing
Funds are credited after successful processing

Check Deposit Flow (Step-by-Step)

Step 1: Image Capture

The customer captures both the front and back of the check. Ensure the MICR data of the check is not a duplicate of a previously successfully processed check. The customer

enters the amount to be deposited,
(Optional) Provides checkType, checkNumber, auxiliaryOnUs, onUs (required if checkType is passed)

📘
Recommendation: Leave these blank so the system can extract the details at the time of Image Qualify verification automatically.

Validation Limitations

A check may not be accepted if:

Not in USD
Already deposited
Not readable or poor image quality
Missing required details
Older than 6 months or post-dated

Step 2: Client-side Image Validation (App Responsibility)

Before submission, ensure images meet the following requirements:

Field	Required	Description
Format	Yes	JPG/JPEG only
Resolution	Yes	Minimum 200 dpi
File Size	Yes	Max 3MB combined
Clarity	Yes	No blur, glare, or shadows
Visibility	Yes	All four corners must be visible

⚠️
Failure to meet these requirements will likely result in rejection during IQA.

Step 3: Submit Deposit Request (System + Integration)

The application submits the deposit request via Create Transaction API.

Key Request Fields

Field	Required	Description
images	Yes	Front & back images
amount	Yes	Deposit amount
accountId	Yes	Destination account
checkVerification	Conditional	Required for self-endorsement

Self-Endorsement Requirements

If enabled, the following are mandatory:

checkNumber
isEndorsed = true
checkType
onUs (based on check type)

Initial Validations Performed

Deposit amount within allowed limits
Destination account is ACTIVE
Duplicate check detection

Outcome

Valid → Transaction moves to SCHEDULED
Invalid account → Transaction moves to PENDING

Step 4: Image Quality Assessment (IQA) (System Action)

This is an automated step (2–5 seconds) where the system:

Validates image quality and Check 21 compliance
Extracts:
- Amount
- Account number
- Routing number
- Check number
Matches extracted data with user input (if provided)

Step 5: Endorsement Processing (System / Configuration Based)

After IQA:

Vendor Endorsement (Default)

System electronically endorses the check

Self-Endorsement

Enabled via configuration
User/system must provide endorsement details

Validation Checks

Presence of endorsement
Duplicate checks
Fraud indicators

Any issues → Transaction routed to Manual Review

Step 6: Manual Review (Operations Action)

Triggered when:

Data mismatches
Duplicate checks
Fraud suspicion
Endorsement issues

Outcomes:

Outcome	Description
Approved	Moves to PROCESSING
Rejected	Moves to FAILED with reason

Step 7: Bank Processing & Fund Realization

Processing
Transactions are sent to the bank in batches (~every 15 minutes)
Status becomes PROCESSING

Fund Realization
Funds typically credited within 5–7 business days

Possible Bank Returns

Even after submission, checks may be returned due to:

Insufficient funds (NSF)
Stop payment
Closed or blocked account

Return Handling

Scenario	Outcome
Returned before completion	Status → FAILED
Returned after completion	Amount debited from account

Transaction Status Lifecycle

Status	Description	Action
SCHEDULED	Initial validation passed	Wait
PENDING	Pre-check conditions not met	Check account
PROCESSING	Sent to bank	Wait
COMPLETED	Funds credited successfully	None
FAILED	Validation or bank failure	Retry
CANCELLED	Cancelled before processing	Re-initiate

Best Practices

Capture images in good lighting with no glare
Ensure all four corners are visible
Avoid manual data entry unless required
Prompt users to retry immediately on failure
Clearly communicate processing timelines (5–7 days)