Fund Account or Receive Funds via Check Deposit

Overview

The Remote Check Deposit (RCD) functionality allows program users to receive payments by depositing scanned check images. The Solid Ops team reviews the check images for clarity, validates the check details, and performs additional fraud checks. Solid then processes the check and sends it to the bank for clearing. Once the check is cleared, the funds will be credited to the user's Solid bank account.

How It Works

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  1. Create Contact: Add the payor as a contact using Create Contact API.
  2. Upload Check Image: Upload the check images using this two-step process
    1. Initiate a check deposit via POST /v1/receive/check
    2. Pass the front and back check images via PATCH /v1/receive/check/{{transferId}}/files
  3. Send to Bank: Solid processes all checks into one file that must be processed for the day. The file is then sent to the bank for processing at 4:00 PM PST on all banking days.
  4. Check Processing: The bank will review and process the uploaded checks. The bank may reject a check for various reasons. If it's due to image clarity or incorrect check details, the user can fix and re-upload the check.
  5. Credit Funds: The bank notifies Solid about all the checks processed for the day through a daily report. 3 banking days after Solid receives the funds, they will be credited to the user’s account. The wait time is to prevent any financial exposure due to returned checks.

Limits and Controls

Before a program can start depositing checks, the “Receive check” feature needs to be enabled in the program config. There are also daily and monthly limits set in the program config. These limits are set by Solid based on the program’s use case.

FAQs

How is a returned check handled?

A returned or bounced check is when the payor bank declines to honor the check. The bank notifies us about the returned check, and Solid Ops will reject the check payment in this case. Relevant webhooks will be triggered to notify the program. The program will be charged $35 for every check that is returned.

Here is the list of webhooks that will be triggered when a payment is declined:

  • check.reversal.debit
  • transfer.updated
  • account.debit
  • check.originated.credit
  • account.credit

When does Solid send the checks for clearing?

Solid will batch all checks and convert them into a single x937 file. The file is sent to LCB for clearing at 4 PM PST. This file will not be sent on weekends and banking holidays.

What if the funds are not credited to the user?

The Solid Ops will usually credit the funds 3 banking days after the funds reach Solid’s check deposit account. The program can contact Solid Ops through a help desk ticket if they believe the funds are not credited on time.

What happens if the uploaded image is not clear?

Uploading a clear check image is important to avoid processing delays. Solid Ops will review each image before it is sent to the bank for clearing. If an image is unclear, Solid Ops will reject the check, and the end user needs to re-upload a clear check image.

The image should be in landscape orientation and have a plain background with proper brightness.

What are the supported file types?

Three file types are supported - JPG, JPEG, and PNG.

What is the maximum file size?

The maximum file size is 10MB

What are the possible reasons for a check rejection?

Here are the common reasons why a check is rejected:

  • The uploaded check image is not clear
  • The check was not honored by the payor’s bank
  • The check failed fraud checks
  • The check was not signed(back)
  • The client asks to stop the check
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