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

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How It Works

1. Customer captures check images (front & back) and enters the deposit amount.
2. Client app sends a request to PCE's Create Transaction API with images and optional metadata.
3. 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.
4. In case of

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

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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)

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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:

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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

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:

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

Transaction Status Lifecycle

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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)