![]() Now, per Check 21, the check casher's bank is the depository and is a warranty recipient entitled to enforce the warranty against the payee's bank so long as the depository (1) sustains a loss and (2) takes the original. Sometime later, the check casher gets a duplicate presentment return because the image deposited by the payee's phone app was first in time. Keep in mind, the original check remains in possession of the check casher and does not physically go to the bank. The check casher then deposits the check to its own account via remote deposit capture (RDC) - this is standard practice today. The check casher takes custody of the check and gives cash to the payee. ![]() Our industry is faced with an epidemic of returns for duplicate presentments where a payee will deposit an image of their check (using their phone app), then bring the original to the check casher. How can we defend ourselves from being left holding the bag? Returns for Duplicate Check Presentments Under Reg CC or the UCC, what is the best way to argue against another bank that their claim is legitimate and ours isn’t? Both banks have an image with their restrictive endorsement, and theoretically the captures could have been made within a short amount of time. We have seen customers commit fraud by using remote deposit capture to deposit the same check at multiple banks, by using the same image of the check front but different check backs in order to use multiple restrictive endorsements. Remote Deposit Capture to Deposit Same Check Customer never actually receives the original check but now has credit for it. Customer scans the check copy, front and back, into the RDC program for deposit into their account. Is it legal for a customer of a bank to use a copy of a check (not the original because they never actually have it) to scan for Remote Deposit Capture?Ĭustomer has their client send a copy of the orginal check to them with the proper endorsement on the back. When mailing a chargeback to a customer, is it required to include a brochure explaining Check 21? We give out disclosures at account opening explaining Check 21 and since it's been in place since 2004 do we really need to send one with every chargeback? Copy of Check to Scan for Remote Deposit Capture Is there any regulation that talks about mobile deposits and what guidelines it provides banks? Mailing Chargeback: Brochure Explaining Check 21? I think banks which offer mobile deposits don't fall under Regulation CC for funds availability. Do we have any claim to recover the funds from the bank that ran the RDC without any sort of endorsement? We hold the paper item. We did not find this duplicate until we reconciled the monthly register for official checks. ![]() That one looks to be taken in by the other bank as an RDC, however there is not one thing written on the back of their image - no signature, no "for mobile deposit" check mark, no "for mobile deposit only" written - nothing. Later that same day, we received the item again in our daily check processing batch. A nonmember walked the paper check into the branch to be cashed and completed the full endorsement on the back of the item. One of our official checks cleared twice. ![]()
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