How to Make Mobile Cheque Deposits in Canada

Let’s say you receive a cheque in the mail or as a gift. What comes next? Getting to your bank’s branch to deposit the cheque at an ATM isn’t always convenient, especially if you have a busy schedule or live in a more rural part of the country. That’s where mobile cheque deposit comes in. With your bank’s mobile application, you can deal with your eligible cheques from the comfort of your own home using the camera on your phone. In this guide, we’ll walk you through how the process works, what you need to get started, as well as hold periods, applicable limits, and common mistakes to avoid.

What is mobile cheque deposit?

Mobile cheque deposit is a technology that allows you to deposit a paper cheque using your banking application instead of visiting a branch or ATM. By taking a clear photo of the front and back of the cheque, you can submit it. In Canada, most of the biggest banks and credit unions offer this service through their mobile applications rather than desktop platforms.

While the process is simple, rules still apply. For example, banks set limits on how much you can deposit, how often you can use the feature, and how long they will place a hold on the funds. The details will vary by institution, so it’s important to understand your bank’s specific policy beforehand.

How mobile cheque deposit works (step by step)

Mobile cheque deposit follows a straightforward process that most Canadian banks use with only minor wording differences. Here are the typical steps:

1. Open your bank’s mobile application on your phone
2. Sign in
3. Select the “deposit cheque” option. The specific wording of this action may vary depending on your bank.
4. Enter the amount exactly as it appears on the cheque
5. When prompted, take a photo of the front and back of the cheque using your phone’s camera. Be sure the photo is clear and readable in good lighting.
6. Confirm the details and press the “submit” button

What you need to make a mobile cheque deposit

Before you can submit a cheque through your banking app, you’ll need:

• Access to the latest version of your Canadian bank’s mobile app
• A smartphone with a working camera
• A paper cheque, made out to you, with each part of the cheque properly filled out
• Endorsement on the back of the cheque. Some banks, like CIBC, ask that you both “sign the back of the cheque and print ‘For deposit only’” on it.
• A stable internet connection that allows you to upload the images

Each financial institution has its own mobile deposit rules and limits. Always review the in-app instructions before you proceed. This can help you avoid delays or rejections.

Cheque hold periods and fund availability

While you only need a couple of minutes to deposit a cheque using a mobile app, it doesn’t necessarily mean you will have access to the funds just as quickly. In Canada, banks often place a temporary hold on cheque deposits while they verify the payment. This helps them reduce the risk of fraud and ensures the funds clear properly before you start spending.

The length of a hold varies as well. Banks consider your account history, the value of the cheque, and who issued it as they vet the document. For example, government cheques may clear quickly, while a personal cheque from an unfamiliar source can take longer. You might also find that your bank releases part of the funds right away, keeping a hold on the remainder until the cheque fully clears. According to the Government of Canada, when making a mobile cheque deposit, “the first $100 must be available to you… on the business day after the day of the deposit.” Note that banks and credit unions can hold the rest of the cheque value anywhere from four to eight days.

Mobile cheque deposit limits in Canada

In order to reduce their risk of fraud, Canadian banks set a limit on mobile cheque deposits. These caps apply per cheque amount, per day or per month. The exact restrictions will vary by bank or account type. For example, long-standing customers who have a stable account history may receive a higher limit than new account holders with no history.

Limits also depend on the cheque itself. Larger amounts or cheques from unfamiliar issuers may trigger tighter restrictions to allow the bank more time to verify the funds.

Tip: If your cheque exceeds the mobile deposit limit for your account, consider depositing it in-branch for faster access.

Mobile cheque deposit mistakes to avoid

Though depositing your cheque via mobile application can save time, small errors can actually delay your access to the money or cause a rejection. Watch for the following issues:

• Forgetting to endorse the cheque. Many banks require a signature and/or a note saying the cheque is “for mobile deposit only.”
• Blurry or cropped photos. If the cheque is unreadable then you can run into issues. For a swift deposit, take the photo in bright lighting and ensure you do not cut off the edges in the picture.
• Attempting to deposit the cheque twice. You can only deposit a cheque one time. If you try making multiple deposits, you could trigger a reversal or account review.
• Discarding the cheque too soon. Since your bank may need to review the cheque for verification purposes, be sure to hold onto it for an adequate period. The exact recommended timeframe varies based on the bank. The Canadian Bankers Association says “two weeks is generally recommended.”
• Trying to deposit a post-dated or stale-dated cheque. If you do not deposit the cheque within an appropriate period, it may fail the bank’s validation rules. According to TD, a cheque becomes stale dated “six months plus one day from the date written on it.”

If a deposit does not succeed, it helps to understand your next steps. Learn more about what to do when a cheque bounces in Canada in our detailed guide.

Is mobile cheque deposit secure?

In Canada, mobile cheque deposit is safe provided that you use your bank’s official application. According to the Government of Canada, when you do, “your personal information is turned into an unreadable code as it is sent to your financial institution electronically.” Then, the “institution uses special information, such as a password, to decode the information and deposit your cheque securely.”

Beyond encryption, Canadian banks layer protection through secure logins, transaction monitoring and debit card fraud detection systems. These all mirror the safeguards for other mobile banking activities like online bill pay and e-Transfers.

Security also depends on how you use the service. To better protect yourself, keep your login credentials private, avoid banking on public wi-fi, and review each deposit confirmation after the transaction. If anything appears off, reach out to your bank immediately.

When mobile cheque deposit makes sense

Mobile cheque deposit works best when your priority is convenience. It suits small to medium size cheques, routine deposits, and other situations where getting to a branch seems unnecessary. But mobile deposit isn’t always the right tool. Very large amounts, time-sensitive payments or cheques with special conditions may require you to cash the cheque in-branch instead. Ultimately, depositing a cheque using a mobile application is helpful as an everyday option, but it’s not one-size-fits-all.