Remote deposit allows you to make payments without having to send paper checks to the bank or credit Union. You can make faster deposits by scanning or taking photos of your checks, rather than moving the physical documents.
Who uses remote deposit?
Business: Business was the first to use remote deposit technology. The organizations receive a lot of checks and need funds quickly to cover payroll and expand.
Individuals Consumers appreciate the convenience that remote deposits offer. Individuals who are busy now want accounts that allow them to deposit their checks using a mobile device. This saves trips to the bank.
Other organisations: Government bodies, non-profits and other organizations make use of remote deposit. It is available to all organizations, and they can select less expensive services and hardware when it makes sense.
This page is primarily for business purposes. How To Make Mobile Check Deposits provides details about making deposits into personal checking accounts.
Note:
Mobile devices are a great solution for small businesses or organizations who don’t get many checks. In other cases, dedicated hardware can handle large numbers of checks quickly.
How Remote Deposit Capture works
Image: In order to deposit checks remotely you must capture an image. Your bank will then begin the process of collecting the money from the writer. Due to Check 21 legislation your bank converts these images into which is a substitute check that can replace the original document.
Mobile devices and check scanners: In the past, businesses have used dedicated scanning machines. Remote deposit scanners range in price from a few hundred dollars to several thousand dollars depending on the needs of your business (such as volume). Some banks charge you a monthly fee and others give away scanners as part of a promotional offer. It is not necessary to buy expensive scanners. Some banks allow low-volume users to use a computer scanner, fax machine or even the camera on your phone.
Data Entry: Depending upon your service provider, it may be necessary to enter your deposit amount, or you can let the remote deposit system do that. Artificial intelligence improves the accuracy of automatic reading. The more checks you process per month, the greater you will appreciate this function.
Post scan: Keep the paper checks after scanning until your bank permits you to destroy them. Some banks may require a higher-quality image or a paper version of certain checks. You should follow your bank’s guidelines and set up a system that will prevent you from depositing the same checks twice.
Funds Available
The main benefit of using a remote deposit service over traditional banking hours is that you are able to deposit your checks later in the evening, even up to 10:00 pm or so for some time zones.
You can usually expect to receive funds from your bank in one business day.
Your bank assumes that a data-component=”link” data-ordinal=”1″ data-source=”inlineLink” >returned checks won’t bounce/a>, but you may need to ‘wait’ after depositing if the check is good. You bank assumes that check will not bounce. However, you may have to wait several weeks after depositing the check to be sure it is valid. You can access your money during this time but are responsible for the check deposit. The bank will take the funds out of your account if the check bounces, or is returned, for whatever reason. If your account becomes negative, you have to pay any fees your bank may charge.
Note:
If you are concerned about the checks that your customers write, consider taking steps to prevent bad checks. Sign up for a service that verifies checks and can reimburse you in the event of a bad check.
How to get Remote Deposit Services
You can set up remote deposits with most banks and credit unions. It’s easy for consumers to do. Just download your bank’s mobile app.
You may want to outsource payments through your bank’s treasury management or a data-component=”link” data-ordinal=”1″ data source=”inlineLink” and data type=”internalLink”. You might even choose to outsource your payments via lockbox services or treasury-management at your bank.
Why banks offer remote deposit
Businesses and consumers are eager for banks and third-party providers to offer remote deposit capture service.
- The customer’s life is made easier: deposits are processed faster and in a more convenient manner.
- Banks can save time and money by using remote deposit. Banks can save time by letting the customer upload the images.
Pros and cons of remote deposit
Remote deposit can save you both time and money. You can avoid trips to the bank and armored cars, as well as waiting for checks to float. There are some trade-offs.
With a remote deposit system, there’s always the chance of an error. Automating the process increases the chance of errors and hardware failures. This problem is amplified when there are large volumes. When the system is working smoothly, human error is virtually eliminated.
Note:
When you switch to remote deposits, it’s possible that new legal issues will arise. You must follow the rules for handling the checks you scan after scanning them, since you are not sending the checks to the bank. You can ask your remote deposit service provider how you can stay compliant.
FAQs (Frequently Asked Questions)
How long does it take to deposit money via remote deposit?
Mobile deposits are no longer than standard deposit, unless the image is a problem. Most checks are cleared in less than one full business day, but it can take as long as two.
How do I endorse a check to be deposited remotely?
The check endorser will be specific to each bank. If you’re not sure, you can write “for mobile deposits” or something similar.
