Under Reg CC, the liability for duplicate check losses belongs to the financial institution that accepts the deposit via RDC if a restrictive endorsement was not obtained. To help mitigate risk of loss associated with the duplicated presentment of checks, Platforms must include language, similar to the following as in a pop window or banner prior to accepting images of a check for RDC:
“Please endorse the check ‘For Mobile Deposit Only’ before submission.”
Your platform must include a banner/pop up window regarding proper endorsement
Terms of Service
The following disclosure must be included in your Terms of Service or agreed to upon the first use of Remote Deposit Capture:
Remote Deposit Capture. Via the Remote Deposit Capture Services we allow you to make deposits into your Account by using the mobile application to take a legible picture of the front and back of a negotiable check and transmitting such images. We will attempt to collect the item by presenting the image or converting the image into a digital representation of the original check (“Substitute Check”). Unlike traditional check deposits, you retain the original paper check when you use Remote Deposit Capture. We request you to retain the original check for at least thirty (30) days after you submit the check image to us.
Necessary endorsement. The checks to be deposited via Remote Deposit Capture shall be properly endorsed in the same manner in which it is made payable to you and with the restrictive endorsement "For mobile deposit only."
Cut-off Time. Your check image must be received by 3:00 pm PST to be considered deposited in such day. Any check image received by us after 3:00 pm PST will be considered as deposited in the following business day.
Availability. Availability. The amount shall generally be made available in your account no later than six (6) business days after the day you made the Remote Deposit. We may place a hold on your deposited check for a longer period of time if we have reasonable cause to doubt collectability of the check.
Longer Delays. In other circumstances, a longer hold period may apply before funds deposited by check are available in your Account. For example, a longer delay may apply in the following cases: (i) we believe a deposited check will not be paid; (ii) you deposit one or more checks totaling $5,000 or more in one day; (iii) you redeposit a check that has been previously returned unpaid; (iv) your Account had a negative balance anytime in the previous six (6) months; and (v) we experience an emergency, such as failure of communication or computer delays. We can delay the availability of your check if your deposit account was opened 30 days or less from the date you remotely deposited your check. In such cases, we will send you an electronic notice informing if your ability to withdraw funds is delayed for any reason and when your funds may be available. Generally, funds will be available no later than ten (10) business days after the deposit is accepted for processing.