Check Image Deposits – No More Bank Visits
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!
How Did Image Check Deposits Come Become 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.
CheckFree is one of the companies who have taken advantage of this new law and have begun to extend image check processing to everyday bank clients.
How Remote Deposit Capture Works
From the user’s point of view, it is actually a very simple process that requires only a standard computer, an Internet connection and a scanner which is built-in on most modern Inkjet printers.
1. You receive a check that you want to deposit.
2. You simply scan the front and back of the check on your home scanner.
3. Log in to your bank’s secure online banking website.
4. Visit the remote deposit, or digital check deposit page.
5. Complete the form with the basic information about your check: date, amount & basic routing numbers from the bottom of the check.
6. Upload the images of the front and back of your check with a few clicks.
7. Verify and submit image check for deposit.
8. 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).
Why Use Digital Deposit?
Safety – not having to transport checks to the bank and risk lost or theft.
Speed – banks should be able to process check transactions quicker when they come to the bank in electronic format.
Time – this deposit can be done in a couple minutes without having to get into your car and drive to a bank and stand in a long line.
Freedom – another reason not to visit a bank. Also, if you move, living in the same city as your bank is no longer a limitation.
Are There Any 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.
Overall there is a huge benefit to consumers with the image check deposit system. It’s not surprising that over 90% of small business and consumer banking clients expressed interest in using the system. Currently only 20% of banks are offering any form of image check deposit system, but you can expect that number to grow rapidly as the word spreads and consumers begin to expect it.
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