Add this phrase for successful mobile deposits

You may have recently gotten a message from your bank that, yes, you should read and act upon.

The message being sent by many banks involves a small, but crucial change involving check deposits made using banks’ mobile apps on smartphones and other devices.

Depositors must now include the phrase “For Mobile Deposit Only” underneath their signature on all checks deposited using mobile apps. Some banks are also suggesting you add “For Mobile Deposit Only at (Bank Name)” or “For (BANK NAME) Mobile Deposit Only.” This new endorsement requirement, instituted by the Federal Reserve, officially went into effect July 1. It applies to all mobile deposits at all financial institutions, such as PNC Bank, Capital One and Legend Bank in Texas.

Without the inclusion of the new phrase, banks say the check will be returned with the notification that your “deposit was rejected due to restrictive endorsement.”

The change is meant to protect banks from fraud, which can occur when a check is accidentally, or intentionally, presented at a bank after it already has been deposited via mobile.

“It’s not like there was rampant fraud, but it was just an area they wanted to tighten up,” said Michael Diamond, senior vice president of payments at Mitek Systems, which has digital transaction technology used by over 6,100 banks. “This is the bank taking care of themselves. The channel is very safe, and the growth is great. More and more people are using it.”