Image Check Deposits – Deposit Checks From Home
Hands up “who cares about going to the bank”? No hands, not a large surprise. Well banks seem to be getting the message with their latest innovation: digital image check deposit. Digital deposit allows business and consumer clients to make check deposits digitally from their own office or home by using a scanner and an Internet connection. No more bank line ups or even trips to the ATM machine. Your personal is now able to process check deposits just like a bank branch.
How Did Image Check Deposits Come Become Possible?
In 2004 US legislation known as “Check 21″ made it unnecessary for banks to handle the physical checks in order to clear the financial transaction. These transactions could now be completed based on images of checks. The bill was passed in order to make the banking system, specifically around check clearing, much more efficient as the need to physically transport the checks between banks would be eliminated.
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 big institutional banking clients, but is fairly new for small business and consumer checking.
Image Check Deposits Step by Step
From the user’s point of view, it is actually a very simple process that requires only a standard computer, an World wide web connection and a scanner which is built-in on most modern Inkjet printers.
1. You or your small business receives payment via check.
2. You simply scan the front and back of the check on your home scanner.
3. Log in to your bank’s secure on the web banking website.
4. Visit the remote deposit page of their site.
5. Enter the basic information about your check: routing number, amount and date.
6. Upload, using a easy point and click, the images of the check.
7. Complete the process, once you see your image on the web.
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.
It’s really that simple. For trusted clients, some banks will instantly credit the funds to their account. For others there might be a small delay, but certainly no longer than an “in person” check deposit.
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 – there are always security concerns with any financial transactions. There is no reason to believe image check deposits will be any less secure than other on the internet banking, but some will want to be cautious.
Overall there’s a big 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.
When you begin to run out of checks and you're in the market for personalized checks, you can purchase and order personal checks online direct from the bank or you can order them direct from the manufacturer....
A Brief History of Bank ChecksThough the banking system has undergone many changes over the course of time, bank checks are one of the constants that have always been a staple of the system. People and companies have been using bank checks as promissory notes...
What Do Your Bank Checks Say About You?Checks! We just love them, don't we?...
Compare Over 700 Styles Of Designer Checks OnlineWhen it comes to applying the word "designer" to the purchase of checks, it isn't quite the same as in the world of haute couture, where the latest styles are cranked out by the likes of Calvin Klein, Ralph Lauren...
How to Print Your Own Bank ChecksWith most any bank, one of their larger hidden fees comes into play when you need to order more checks, despite their "free" checking. After all, these banks have to make money in some fashion. However, you can save the...