Context: Most large corporates route incoming check payments through a lockbox, a bank service allowing customers to mail checks to a designated address; the bank collects, scans and deposits the checks, then provides the company with check images and remittance data. It takes manual check handling off treasury's plate and speeds up posting.
That works cleanly for a company routing checks into one account and then allocating the funds to other accounts. It gets awkward with funds that cannot be commingled and must remain segregated—such as those belonging to a corporate foundation—because that can require a separate account and potentially a separate lockbox arrangement. And a lockbox becomes less practical or worthwhile when check amounts are small or an entity processes just a handful of checks each year. In those cases, treasury weighs the alternatives: a desktop check scanner, an over-the-counter deposit at a branch or a mobile deposit in which the check image is captured through a mobile banking app but not stored on the phone.
The hesitation around using mobile deposits usually stems from the risks of duplicate deposits, handling and custody of the original paper check, unauthorized access or use, device security and decentralized controls. Banks can subject mobile deposits to user entitlements, authentication, deposit limits and other controls similar to those governing other treasury services. Once mobile deposits are deployed, treasury must decide who has deposit access and what dollar limits apply. At some banks, corporate mobile deposit is built on top of a desktop remote deposit service—so turning it on can require enrolling in that service first, even if treasury does not want or need a physical scanner.
A member of NeuGroup for Global Cash and Banking recently used NeuGroup Connect to ask whether peers allow mobile check deposits. Some said they prohibit mobile check deposits or allow them for a single user in rare cases, but most landed on some version of "yes, but it’s tightly controlled." The member’s company has not permitted mobile deposits historically. But requests to use them periodically arise from teams including credit and collections and, most recently, government affairs.
Member question: “Quick poll: For entities where there may not be a lockbox, do you allow mobile check deposits, i.e., the scanning of a check via an employee's mobile phone?”
Peer answer 1: “We have a 'catch-all' lockbox where miscellaneous checks can be rerouted. We then have an accounting team that will move those funds around to the appropriate entities if needed. In some cases, we have also allowed bank-by-mail. We do not allow deposits from a phone though.”
Peer answer 2: “I am working through a similar issue right now, which is even more challenging with our treasury team being remote. However, I have turned on mobile check scanning for myself while we work through remote deposit (utilizing a resource in our mailroom and/or accounting) and lockbox solutions (we have multiple entities currently depositing checks and we want to consolidate into a single process).”
Peer answer 3: “We have the ability to, but it is the last resort to use personal phones for mobile deposits. We do have desktop scanning machines set up for the AR team and treasury team. So we generally scan the checks using the desktop scanner instead.”
Peer answer 4: “We typically have an employee on the treasury team receive checks sent to the office and they have a mobile deposit machine. I’ve also seen this owned within the AR function at prior companies. - “Typically, we've used mobile deposits for businesses with limited check receipts. However, for any higher volume a lockbox is typically preferred since it takes time to deposit checks via mobile deposit, and the process is typically quite manual. However, lockboxes can obviously be cost prohibitive.”
Peer answer 5: “We have a miscellaneous lockbox for any checks that come into our offices. We have recently added an iPad at one office so they can scan the checks and the form that we require that includes the accounting for the funds. Otherwise, anyone can fill out the form and send the check to the lockbox directly.”
Peer answer 6: “Similar to others, I am the only one with this access enabled currently, so it's only used in rare cases (mostly for random tax or risk management checks we receive). We do not necessarily want this to be a broad service for teams.”
Peer answer 7: “I would have it as a contingency plan. Remote check deposit devices can be ordered through banking partner and you would then establish a check deposit process where the use of this machine and the corresponding software is detailed (I've seen a specific computer assigned for this check deposit device) and the process of archiving physical checks for at least 30 days in a locked drawer for security purposes to then be disposed after the 30 days.”
No clear best practice: In a follow-up email, the member said, “What stood out to me was the lack of a definitive answer from respondents, with most recommending a conservative, risk-based approach.” Because mobile deposits are harder to audit and control, she says many companies lean on lockboxes or on-premise scanners and reserve mobile for exceptions. The specific account that prompted her question only needs to deposit about 10 checks a year; so the member is leaning toward over-the-counter deposits at a branch, judging the volume too low to justify setting up desktop deposit capability, which her bank requires to enable mobile deposits. The longer-term fix, in her view, is to move off paper checks toward electronic payments wherever possible.
