When is an IRD required?

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Question:

Does an online bank (such as Ally Bank or go2bank) have to provide customers with an Image Replacement Document (IRD) when checks deposited via mobile Remote Deposit Capture (mRDC) are returned? If no, does it then become the responsibility of the payee to work with the maker of the check to recoup the funds?

Answer:

There is no federal requirement that a depositary bank return to its depositor a check that has been returned unpaid by the paying bank. But many if not most banks do. Whether an online bank will return such a check (or a substitute check) is something its customers will need to ask the bank about.

If the bank does not return the charged-back check, the payee should use the notice of charge-back as documentation with which to ask the check issuer for payment.