# Depositing checks

## Lifecycle

![Check Deposit statuses](/images/docs-check-deposit-status.png)

| Status      | Description                           |
| ----------- | ------------------------------------- |
| `pending`   | The Check Deposit is pending review.  |
| `submitted` | The Check Deposit has been deposited. |
| `rejected`  | The Check Deposit has been rejected.  |
| `returned`  | The Check Deposit has been returned.  |

## Depositing a Check with Increase

Depositing a Check via the Increase API kicks off several steps involving you, Increase, the Federal Reserve, and the receiving bank.

1. You make a `POST /check_deposits` call with the [details](/documentation/api/check-deposits#create-a-check-deposit) of the deposit amount and images of the check. A Check Deposit is created with a status of `pending`.
2. A Pending Transaction is immediately created for the full amount of the deposit.
3. The check images are processed and reviewed by an Increase operator. Upon successful processing, the Check Deposit object updates with its `deposit_acceptance` [details](/documentation/api/check-deposits#check-deposit-object.deposit_acceptance).
4. When the deposit is submitted to the Federal Reserve, Increase updates the Check Deposit object with its `deposit_submission` [details](/documentation/api/check-deposits#check-deposit-object.deposit_submission) and the status is updated to `submitted`.
5. A Transaction is immediately created for the full amount of the deposit and the Pending Transaction is marked as `complete`.
6. If a Return is received from the originating bank, the Check Deposit object is automatically updated with `deposit_return` [details](/documentation/api/check-deposits#check-deposit-object.deposit_return) and the status is updated to `returned`. A new Transaction is created to decrement funds from the Account.

## Reviews and rejections

All check deposit images are processed and reviewed by an Increase operator. This includes validation of the account number, routing number, amount, and serial number. If there is invalid information or an issue processing the check image, the Check Deposit object status is updated to `rejected`. The Pending Transaction updates to `complete`, no Transfer information is submitted to the network, and no additional Transactions are created.

## Returns

Once a Check Deposit is submitted to the Federal Reserve and presented to the payor bank, that bank must decide to dishonor it by midnight of the next banking day. The timezone is at the discretion of the payor bank.

The exception to this short window is warranty claims. If the payor bank discovers fraud, forgery, or alteration after settlement, it can pursue a return under the transfer and presentment warranties of the UCC. These claims can surface weeks or months later, though they are relatively rare.

### How returns work at Increase

If a return is received from the payor bank, Increase automatically reconciles it with the original deposit. The Check Deposit object is updated with its `deposit_return` [details](/documentation/api/check-deposits#check-deposit-object.deposit_return) and the status changes to `returned`. A new Transaction is created to decrement funds from the Account. You can view return details — including the `return_reason` and the associated `transaction_id` — on the Check Deposit object via the API or in the Dashboard.

## Lockboxes

If you'd like to deposit checks received via mail, see the [Lockboxes guide](/documentation/lockboxes).