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!
Making Digital Deposit 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 check 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.
The Image Check Deposit Process
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.
- You or your small business receives payment via check.
- You scan the check using the scanner attached to most standard printers.
- You log on to your bank’s secure online banking portal.
- Visit the remote deposit page of their site.
- Complete the form with the basic information about your check: date, amount & basic routing numbers from the bottom of the check.
- Upload the images of the front and back of your check with a few clicks.
- Complete the process, once you see your image online.
- Behind the scene your bank processes the check electronically very similar to the way a physical check would be cleared.
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).
4 Reasons to Remote Deposit your Checks
- Safety - you eliminate risk of losing or having the check stolen in transport to the bank.
- 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.
What are the Potential Pitfalls?
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.
