Image Check Deposits - Deposit Checks From Home
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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 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 have seized this new direction to begin extending image check processing to consumers and end users. The technology has been around for a while for large institutional banking clients, but is fairly new for small business and consumer checking.
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.
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 Internet access portal.
4. Visit the remote deposit page of their site.
5. Fill in a few pieces of information about the check you are depositing: amount, date, routing numbers.
6. Upload, using a simple point and click, the images of the check.
7. Verify and submit image check for deposit.
8. Then behind the scenes your bank will complete the process in the same manner as if you had deposited the check in person at a branch.
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).
Reasons to Remote Deposit your Checks
Safety - you eliminate risk of losing or having the check stolen in transport to the bank.
Speed - check images should be process faster, since banks no longer have to scan the images and enter check information manually.
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 - of course there is potential for abuse and security breaches, but that is true of every aspect of banking and check image deposits shouldn't produce any greater problem for banks than the rest of their day to day safeguards.
Digital image check deposits really do represent a major breakthrough in banking. The dreaded bank line is one of the biggest consumer complaints and depositing checks was one of the last reasons why consumers and business owners had to actually visit a bank. While currently only about 20% of banks are offering image check deposits, that number is expected to rise quickly due to strong demand from banking customers.
Article Source: Articlelogy.com
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