|
Image Check Deposits - Deposit Checks From Home |
By:
William A. Gordon |
|
|
Image Check Deposits - Deposit Checks From Home
William A. Gordon
If you dread going to the bank and standing in line to deposit a simple check, you'll be happy to hear about the latest innovation in the financial industry. Digital deposits, or remote deposit capture is a method for consumers and small businesses to deposit checks remotely, from a home or office for example, using an image scanner. Simply upload a check image to your bank's website, and presto, the funds are in your account.
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 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
>From the end user's point of view, the process of depositing a check image is very simple. All that is required is an Internet connection, a basic computer and a simple scanning device like the kind found on any modern "all in one" printer.
1. You receive a check that you want to deposit.
2. Simply scan the check as an image and save it to your hard drive.
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. 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. 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.
It's really that simple. For trusted clients, some banks will instantly credit the funds to their account. For others there may be a small delay, but certainly no longer than an "in person" check deposit.
Reasons to Remote Deposit your Checks
Safety - there is no risk of losing the check or having it stolen in transit to the bank.
Speed - banks should be able to process check transactions quicker when they come to the bank in electronic format.
Time - you save time by no longer having to drive to the bank or wait in line.
Freedom - you are no longer tied to your bank. If you move to a new city, you could keep your bank even if it is hundreds of miles away.
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.
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.
William A. Gordon writes about http://www.personalcheckspro.com/image-checks/) image checks and other banking issues and news. Visit his check site for examples of hundreds of check styles including designer checks and http://www.personalcheckspro.com/image-checks/top-stub-checks/) top stub checks.
|
|
Article Source: http://www.statssheet.com/articles/article70143.html |
|
|
|
|
|
