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

Visa removes Heartland from PCI Compliant list

Heartland Payment Systems has been removed from Visa’s list of PCI DSS compliant service providers. This is not in response to anything new, but rather in response to a review of what is arguably one of the largest data breaches ever, the Heartland Data Breach. Heartland is actively working on revalidation of PCI DSS compliance using a Qualified Security Assessor. Visa will consider relisting following the submission of their PCI DSS report on compliance.

Heartland Payment Systems is currently on probation which means they must meet more stringent security requirements than usual.

Interestingly, Robert Carr reports on the official company data breach site that as part of their undergoing their current audit, “Many of the firm’s recommended enhancements to our security have already been implemented, and others will be as part of the current audit.” Of course, I’d be surprised if any company wouldn’t get suggestions for improvement. But they’ve had months to identify and fix problems and you have to wonder why if they were fully compliant before, they would still be identifying problems at this stage.

iStream Financial Services Anticipation of Risk Management Pays off

iStream Financial Services’ Anticipation of Risk Management Related to Remote Deposit Pays Off

January 27, 2009 – Brookfield, Wisconsin – iStream Financial Services, Inc., a financial technology company in the business of managing payments, announced today the company’s systems, policies and practices are on target with the FFIEC’s newly-released guidelines for risk management for Remote Deposit Capture (RDC).

“These new risk management guidelines from the FFIEC are critical guidelines for examiners, business owners, banks and technology providers as many of the solutions out there aren’t as secure as they could be. Based upon our experience in payments, we anticipated and appreciate the need for these controls. That said, we’ve worked hard to ensure the reliability of our systems and procedures surrounding our solutions. The completion of our SAS 70 Type II specific to RDC processes is just one way we have proved our commitment to our customers” said Fred Joachim, President, iStream Financial Services.

“We believe we have the most secure solution on the market. Our RDC process is secure from start to end, beginning with encrypting the images at the point of capture and eliminating the need for the user to store or export sensitive data.”

iStream’s foresight goes back years, not just months. In October of 2006, iStream was asked to present at the FDIC Technology Summit in Washington D.C. regarding “Emerging Issues and Risk Mitigation in the Financial Institution Industry”. The presentation focused on helping auditors and regulators understand the risks related to RDC. iStream continues to be a leader regarding RDC processes and technology.

“You read and see the effect of data breaches almost daily. From credit card information to Social Security Numbers, no person or company ever wants it to happen” states Mike Nell, VP of IT. “Our IT team has over 75 years experience developing solutions which address the inherent risks in payments systems. We were able to leverage that experience to engineer security, integrity, and reliability into our solution from the start.”

iStream’s Remote Deposit Capture service has seen phenomenal growth within the past few years. iStream’s flexible solution enables businesses to leverage multiple banks and is a major differentiator in the marketplace. In today’s economy, iStream provides businesses the controls they need while being able to work with the banking partner of their choice.

The FFIEC guidance, entitled “Risk Management of Remote Deposit Capture,” addresses the essential elements of RDC risk management: identifying, assessing, and mitigating risk, as well as measuring and monitoring residual risk exposure. The guidance also discusses the responsibilities of senior managers in overseeing the development, implementation, and operation of RDC in financial institutions.

iStream developed the first integrated Application Service Provider (ASP) RDC solution that enabled the company to go direct to customers and offer Financial Institutions a superior solution. The essential ingredient for iStream’s success is simplicity: the iStream ASP model takes minutes to set-up; the deposit process is three easy steps; and the user-friendly system moves beyond the deposit to incorporate online reporting, returns management, and is easily integrated to back office applications such as accounts receivable systems.

About iStream Financial Services:
iStream Financial Services’ core mission is to provide businesses and banks solutions to consolidate and manage various payment types. The company leverages its technology platform, knowledge and people to introduce new products that will help business and banks across the country. iStream complies with FDIC security standards and is audited annually. The company has also completed a SAS 70 Type II to validate the end-to-end controls of our Remote Deposit Capture process ensuring the integrity, reliability, and security of our application and systems.


CenPOS universal processing platform

CenPOS is a technology solution with an intelligent switch that makes your credit cards, checks, loyalty program and alternative payments work better. It is NOT credit card processing. Ideal for mid and large size businesses with a large volume of payment transactions, including check and credit card.

Built by First Payment Systems to help companies more value out of their payment systems and combat the rising cost of electronic payments,  CenPOS only costs a small fraction of the savings and value that is instantly created. If you have the business volume,  you will realize SIGNIFICANT HARD DOLLAR SAVINGS.

What is CenPOS? Although there are many features and benefits, at the heart of the technology is the intelligent switch. It routes payment processing via the least cost method by identifying what it is and knowing the least cost way to process it. This all happens faster than a traditional desktop credit card terminal.

How does CenPOS work? For the retail merchant, a signature capture terminal with USB plug, hooked up to any computer with an internet connection is needed.  Additional information is available by scheduling a demo.

What else does CenPOS do? Please call for more information. The solution offers amazing benefits, including meeting future 2010 PCI Compliance requirements.

How much does CenPOS cost? A small fraction of your transaction costs. If you have the business volume,  you will realize SIGNIFICANT HARD DOLLAR SAVINGS, even after factoring in the cost of any equipment you may need and CenPOS fees. Typical savings are realized within the FIRST MONTH. You do not need to buy terminals from us. You can buy them anywhere or we can obtain them at wholesale cost for you.

Who is CenPOS for? Without revealing confidential information, CenPOS is ideal for brick and mortar retail environments. Installation is typically less than 5 minutes at each location.

How can I find out more about CenPOS? Call Christine at 954-942-0483. I work directly under the company President at First Payment Systems.

FPS is dedicated to enabling merchants around the world to accept, process, and reconcile electronic payments, including credit and debit card processing, check authorization as well as solutions for ecommerce, dynamic currency conversion, and multi-currency pricing. FPS offers leading edge solutions from internationally recognized processors and also integrates its own proprietary platforms with top acquirers. While most banks and ISO’s take a generalist approach, accepting every merchant and offering cookie cutter solutions, FPS understands that each market is different and offers distinct solutions for each customer.

ABOUT CenPOS: CenPOS is a processing platform developed by FPS.

ABOUT 3D Merchant Services:
3D merchant blog
3D Merchant Services is the online brand created by FPS independent agent and VP Marketing Christine Speedy to communicate a wide array of payment processing information to merchants and to develop business leads for FPS and CenPOS services. 3D Merchant itself does not offer any direct services to merchants.
TO ORDER CENPOS, CREDIT CARD PROCESSING, CHECK PROCESSING OR OTHER PAYMENT PROCESSING SERVICES, PLEASE CALL Christine AT 954-942-0483. Christine offers CenPOS, and other payment processing services, as an agent of First Payment Systems.

MasterCard adds a Network Access and Brand Usage Fee

Effective April 17, 2009, MasterCard will assess a Network Access and Brand Usage Fee (NABU) of $.0185 for all U.S. issued transactions settled with MasterCard.

These costs are certain to be passed along to all merchants.  All merchant agreements include language to pass along costs to merchants from Visa, MasterCard, and more recently, Discover.

Merchants will likely see these costs in their June statements. If you are on “pass through interchange” pricing, the costs will be a line item, without mark up. If you are any other type of price plan, the costs may be hidden within other costs, or they may be a separate line item, depending on your overall price plan.  The costs may be passed through as is, or part of a broader cost increase for your fees.

The MasterCard NABU fee comes at the same time of annual Visa and MasterCard interchange updates, and therefore will be included with other fee changes customers will experience in their May or June merchant statements.