Remote deposit is a way to process payments without sending checks to the bank. With remote deposit, you can scan an image of a check, send the image to your bank, and see the funds added to your account more quickly. Let’s cover the basics of remote deposit technology.
Who Uses Remote Deposit?
Businesses are the most likely users of remote deposit technology. They see more checks, and they want to get the checks processed more quickly. However, more and more banks offer remote deposit as a service to personal (non-business) customers.
How to Use Remote Deposit
To use a remote deposit service, you scan checks. An image of the check goes to your bank, and the bank begins the process of collecting money from the check writer.
In most cases, a special check scanner is used. Remote deposit scanners can cost a few hundred dollars or a few thousand depending on your needs - such as how much volume you do. Some banks just charge a monthly fee for a scanner, and some will throw in a free scanner as a promotion to win your business.
However, expensive scanners are not always necessary. For example, you may be able to use a plain old consumer scanner for personal remote deposit. Some banks allow you to use a fax machine, and some are even experimenting with ways to use your mobile phone camera for remote deposit.
Problems With Remote Deposit
It’s possible that remote deposit will save you time and money. You may be able to skip trips to the bank, armored car services, and time waiting on check float. However, there are tradeoffs.
There’s always the chance that your remote deposit system will have errors. By automating things, you run the risk of errors. Of course, you might reduce human errors at the same time.
You also have to worry about new legal issues when you switch to remote deposit. Since you’re not sending checks to the bank, you have to know the rules about how to handle the checks after you scan them. Ask your remote deposit service provider for suggestions on how to stay compliant.
Why Banks Offer Remote Deposit
Banks will increasingly offer remote deposit capture services to businesses and consumers. It makes life easy for customers: deposits are faster, and they’re much more convenient.
Remote deposit is also less labor-intensive for banks. You’ve created the image so they don’t have to.
Remote Deposit Banks
The list of banks offering remote deposit capture features is constantly changing. USAA has been a leader in offering personal remote deposit for non-business accounts.
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