Check Image Capture Quick Comparison

Remote Deposit vs. Mobile Deposit vs. ATM: Best Use Cases

There is no one-size-fits-all method that’s the “best” way of depositing checks. Below we compare the pros and cons of the three main self-serve deposit methods, with more detailed explanations of each category at bottom.

	Desktop RDC	Mobile Deposit	ATM Deposit
Speed per item	1-5 sec.	30-60 sec.	10 min.+ *
Best User Experience	3+ items	1-2 items	1-10 items
MICR scan	Yes	No	Yes
Fraud Potential	Lowest	Highest	Medium
Typical limits	Varies	$15,000/mo.	30 checks/deposit
Endorsement	Auto-printed	Handwritten	Physical possession
Image Quality	High	Varies	Best**

Speed

The difference between desktop and mobile RDC is the most cut-and-dry: A desktop scanner will capture images of checks as fast as you can insert them. That’s a few seconds each for a single-feed scanner, or less than a second if you have a multi-feed batch scanner.

Mobile deposits are one check at a time, and the user has to take separate photos of the front and back. Mobile RDC apps tend to have strict image quality requirements (see below) and re-takes due to lighting or focus are common. The user must also take time to endorse each check by hand, adding to the overall time required.

*ATMs accept checks at a rate similar to desktop RDC, but the time spent traveling to a physical location and/or waiting to use the machine represents an extra cost. If the customer has another reason to visit the bank anyway — for example, to deposit cash — this figure may be comparable to other deposit methods.

User Experience

According to feedback from banks that offer mobile check capture, the user experience tends to deteriorate quickly when depositing more than a few checks. The process—endorsing, photographing, flipping, and often retaking images—becomes cumbersome and inefficient.

Desktop RDC offers a smoother experience, but similarly, customers report frustration with single-feed devices when there are more than about 10 items to scan. (Businesses with large numbers of checks at certain times of the month, such as apartment complexes, often fall into this category). For these customers, a larger high-speed scanner may be appropriate.

An ATM tends to be most useful for customers who have a moderate number of items to deposit — but not too many, since it operates at speeds similar to that of a single-feed desktop scanner. Many banks also have a limit to the number of checks or bills that can be deposited at once.

MICR Scan

All desktop check scanners and many ATMs include a specialized reader that picks up the magnetic MICR line encoded at the bottom of checks. This is an important feature that guards against serious errors with the account and routing numbers in a deposit.

Mobile deposit has no way of capturing the magnetic signal in the MICR line, and instead relies entirely on optical character recognition (OCR) to read the account information. Because of this, many banks enforce very strict image quality requirements on checks deposited through mobile RDC, resulting in potential additional re-takes of photos. How strict the bank wants to be is a balancing act between error prevention and customer convenience.

Fraud Potential

Fraud tends to be very low with desktop RDC, because it almost always involves a scanner tied to a specific account, which is held by a business that has already been cleared through Know Your Customer (KYC) requirements. Anyone attempting fraud would be tracked down very easily — so few try it!

Mobile RDC is the most susceptible to fraud because it’s open to anyone, including individuals who may be less concerned with being caught, or even identity thieves who opened a new account with the intent of committing fraud. A classic type of mRDC fraud is the double deposit, in which someone deposits a check through a mobile app and then cashes the same physical document at a different bank or money services business. Increased cooperation between financial institutions, as well as stricter endorsement requirements, have helped address this problem to a degree.

Fraud at ATMs is a mixed bag, because individuals may still attempt to deposit fraudulent checks, and using a machine helps avoid contact with bank personnel. However, since the bank ends up with physical possession of the check, double deposits and endorsement fraud are more difficult; and counterfeits and forgeries are more likely to be detected under scrutiny. The depositor is also usually on camera while on the premises, making it a less attractive avenue than fully remote options. In addition, the bank typically sets a funds availability hold limiting the amount that can be accessed right away.

Typical Limits

All three methods have per-transaction, daily, and possibly monthly limits decided upon by the bank based on risk level.

For desktop RDC, those limits are often very high, with the most trusted customers being capped in the millions of dollars.

ATMs may or may not have explicit limits on dollar amounts, although funds availability holds act as a soft cap. One other limiting factor is the number of documents at a time that can be accepted by the machine, typically around 30.

Mobile RDC is the exception, where transaction limits of $2,000-$10,000 and monthly limits of $15,000-$25,000 are commonplace as a precaution against the worst abuse. This tends to make mobile RDC unattractive for business use, as even a single large payment might put the customer over the limit. When combined with the slower deposit process, it means most business RDC users tend to opt for desktop.

Endorsement

Most financial institutions today require desktop RDC customers to use a scanner with an inkjet endorser that automatically prints a message on the back as the check is scanned. This was common practice in the past, but became ubiquitous in the United States around 2018 when new rules (Reg CC) specified that any bank or credit union that accepted a check without an endorsement would be liable for any duplicate deposits after that. In any event, desktop RDC endorsement is automatic, which is important to the bank, and fast, which is important to the customer.

Endorsement for checks deposited at ATMs is mostly a moot point, since the check is in the bank’s physical possession and cannot be deposited again.

Banks require that checks deposited through mobile RDC also be endorsed, typically with a handwritten message on the back. Besides being more time-consuming for honest customers, it’s not impossible to fake! (For example, a fraudster might take a photo of the front of one check, then the back of a different check with an endorsement, then try to pull off the double-deposit trick.)

Image Quality

Desktop RDC scanners and ATMs both tend to provide good images because they employ contact image sensors designed to take close-up pictures of the check, and feed mechanisms designed to move the document at a constant rate. Once again, mobile deposit leaves the most room for variations, as the camera, lighting, distance, focus, and user error are all out of the bank’s control. Again, this leaves the financial institution in the difficult position of trying to balance security (strict high-quality images) against customer experience (more relaxed image quality).

**ATMs were rated “best” in image quality because the original document ends up in the bank’s possession, making it possible to clear up any errors definitively.

Remote Deposit Scanner Options

Digital Check offers multiple hardware options for remote deposit capture, certified with many of the industry’s most prominent core banking systems providers. Check with your financial institution or software provider to verify compatibility before purchase.