I recently began depositing paper checks with Bank of America by taking a picture of them using the Iphone App they developed. This technology allows me to deposit a check from the comfort of my home without having to drive to the bank or ATM.
However, once I complete the deposit, I always feel like having the physical check still in my possession just seems a bit awkward. I know I'm supposed to keep it on file for a certain period of time, but trying to keep physical checks on file after they have been deposited requires a good filing system and is ripe for accidental duplicate deposits.
I've been wondering lately as well how banks stop someone from depositing a check via the application to one bank, then depositing it a second time to a completely different bank. A quick google search tells me that the industry has not completely figured this out yet. From what I've read, there has been some fraud, but not a substantial amount. However, this may simply be because mobile check deposits are a fairly new technology, and the industry it setting itself up for fraud.
This article has some very interesting points about the risks of mobile check deposits. Particularly the example at the end about a duplicate check causing someone to have an overdrawn checking account and bouncing an important check.
I'm curious how many others have tried this technology and what your experiences have been.
Here is the article:
Double Cashing With Mobile Banking — Krebs on Security
I have virtually eliminated the use of checks for paying bills, but I still find myself being on the receiving end, so I haven't been able to completely rid them. The sooner the better as far as I'm concerned.