Mobile deposit would seem to be a great way to collect rent payment. After all, using your smart phone to take a picture of a rent check eliminates the need to go to your bank. By eliminating a trip to the bank, you save time. And time is money. Unfortunately, there are still downsides with depositing a check using your bank’s mobile app. One downside in particular is that mobile deposit of rent payment delays can be lengthy!
Bank of America explains the mobile deposit delay on their website:
Deposit holds typically range from 2-7 business days, depending on the reason for the hold. For deposits made on weekends, funds are considered deposited on Monday (the first business day), so the hold will go into effect the next business day (Tuesday).Bank of America Website
Moreover, with mobile deposit, the delay is typically longer for larger amounts. A check of $100 will clear fairly quickly. However, with a larger check like rent payment, deposit delays are common and lengthier. It can be frustrating not knowing how long it will take for a check to be deposited and thus when the funds are ready for you to use.
Fortunately, alternatives to mobile deposit exist. Many landlords use online rent payment from a service like ClearNow (www.ClearNow.com). With ClearNow, rent payments deposit consistently in three business days. Moreover, a landlord does not have to scan the check. Payment occurs automatically without any need for a smartphone or your bank’s app. There are no checks to mail and no mail delays.