remote deposit capture

An executive at a local bank asked me about what services they need to offer so that I might expand my banking relationship with them. My answer? Remote Deposits. The service needs are a bit different for businesses and personal banking, but the essence is the same.

What is Remote Deposit Capture?:
Remote Deposit Capture is a service which allows a user to scan checks and transmit the scanned images to a bank for posting and clearing.

What is needed for Remote Deposit Capture to work?:
– computer with internet connection
– a check scanner
– a bank or service provider that will accept the images

How does remote deposit capture work?

– scan checks to make a digital deposit
– transmit deposit via an encrypted internet connection
– deposit post to your account
– funds availability based upon your standard deposit schedule.

RDC benefits:
– Reduce travel time to and from the bank. That reduces labor, fuel and is good for the environment. The risk of an accident on the way to or from the bank is eliminated.
– Get deposits into the bank quicker- scans are quick and easy whereas making time to go to the bank may cause delays.
– Quick access to check status. No waiting weeks for returned insufficient funds notices. Also, it’s easy to retrieve deposit check scans for proof when needed.

Two things can happen to the deposit checks. They can be cleared converted to ACH or cleared as images. If it’s being converted to ACH, the check writer must be notified. This is why some web sites accept payments simply state “make an ACH payment”.

Check 21 legislation allows checks to be processed and cleared based upon images of the items for deposit. Check 21 applies to all US-Dollar checks drawn on a US-Bank.

For your business, if you have a small number of check deposits a month, use your banks RDC service if they offer it. If you have at least 1,000 checks per month, then an outside service provider may be a better option. You’ll need to weigh the costs and services provided by each entity to determine what’s best for you.

Features to look for:
– duplicate detection
– automatically re-orient the displayed image of any check that is scanned upside down or backward
– downloadable reports in excel format