Image Check Deposits - Deposit Checks From Home
View PDF | Print View
by: WilliamA.Gordon
Total views: 10
Word Count: 582
For a lot of people the idea of "never stepping foot in a bank again" would be a dream come true. Now it seems the banks are ready to cooperate with their latest innovation called, digital image check deposit. Digital image deposit allows business and consumer banking clients to deposit check from their home or office by simply scanning in an image of the check. Say good-bye to bank lines or even a trip to the ATM, your home is now your bank's latest branch office!
What Makes Digital Deposits Possible?
Check 21 was a piece of legislation introduced in 2004 which paved the way for banks to use images of checks, rather than the actual paper check itself, to process financial transactions. The bill was passed to make banking more efficient by allowing the images to be sent from one financial institution to another via the Internet, rather than transporting physical checks from bank to bank for clearing.
Companies like CheckFree quickly recognized the opportunity to extend this new legislation to the benefit of the consumer so they began developing solutions that would enable banks to offer remote check image scanning on a wide scale.
How Remote Deposit Capture Works
It is an extremely simple process that requires only a standard computer, an Internet connection and a scanner. Most Inkjet printers sold these days include a scanner as part of their "all in one" models.
1. You have received a payment via check that needs to be deposited.
2. You scan the check using the scanner attached to most standard printers.
3. Log in to your bank's secure online banking website.
4. Visit the page on your bank's site for digital check deposit.
5. Fill in a few pieces of information about the check you are depositing: amount, date, routing numbers.
6. Upload the image from your scanner by clicking a button and linking to it from your hard drive.
7. Verify and submit image check for deposit.
8. Your bank then completes the process electronically or in cases where the check is not compatible with electronic clearing systems, the check is reprinted onto paper and cleared the old fashioned way.
That's about it. Depending on your bank and your personal relationship with them, you may see the funds in your account anywhere from instantaneously to a couple days (normal check cashing time frame).
Why Use Digital Deposit?
Safety - not having to transport checks to the bank and risk lost or theft.
Speed - banks will complete check clearing faster when presented with digital image checks.
Time - you save time by no longer having to drive to the bank or wait in line.
Freedom - with so much of banking now done electronically, having to deposit checks in person or in an ATM was one of the last reasons to ever visit a bank.
Are There Any Drawbacks?
Security - just like any other bank transactions, this will attract attention from potential fraudsters, which will probably deter some people from using check images.
Digital image check deposit or remote deposit capture represents a major innovation in the banking industry and passes along a huge set of benefits to the consumer. Currently only about 20% of banks are offering this service, but recent surveys suggest that almost 90% of business clients (and probably almost as many personal clients) said they would use it when it comes available. If you deposit checks on a regular basis it is worth inquiring if your bank is offering this innovative check cashing feature, and if not letting them know that you would appreciate it being available.
About the Author
William A. Gordon publishes articles about image checks and many other bank related topics. Visit his check site for examples of hundreds of check styles including designer checks and recycled checks. Get a totally unique version of this article from our article submission service
Rating: Not yet rated