Hi Katherine,
Based on the UCC definition of endorsement, our interpretation is that the checkbox would not constitute a true restrictive endorsement, and we would recommend that you still require your customer to put the endorsement on the check "for mobile deposit to...". However, this becomes a legal conversation, and you may want to consider running this scenario through your attorney to see what they think.
Let me know if you have other questions.
Best,
Mark
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Mark Dixon, AAP, APRP, NCP
VP Education
New England ACH Association
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Original Message:
Sent: 05-31-2023 11:26
From: Katherine Dearborn
Subject: Mobile Deposit Restrictive Endorsement
Hello,
I have a question regarding the RDC restrictive endorsement. At the NEACH Check Payments Workshop with Angie Smith in 2018 (excellent workshop!), there was much discussion regarding this endorsement. The question was asked, if the checkbox is selected in front of the preprinted line on the back of a check referencing mobile deposit, is that sufficient if the bank name was added. The answer was no, that was for depositor record keeping purposes only. As a result, we decline these checks.
We have noticed that the wording is updated on some of the checks and the line next to that checkbox now states, Check here for Mobile or Remote Deposit Only, followed by a line to enter the bank name. Understandably, we are getting push-back from depositors when declining these checks if the endorsement is not handwritten.
I have been unable to find documentation regarding acceptance/nonacceptance of that pre-printed verbiage, if checked and FI name entered. Any direction or comments would be greatly appreciated!
Thank you.
Katherine M Dearborn
Senior Vice President / Deposit Operations & eBanking
780 Main Street, Fitchburg MA 01420
O: 978.343.2225