Remote Deposit Capture Overview

As stated by the Federal Deposit Insurance Corporation (FDIC), “Remote deposit capture (RDC) allows financial institution customers to ‘deposit’ checks electronically at remote locations, usually in the customers’ offices, for virtually instant credit to their account. Paper checks are digitally scanned, and an image of the check is electronically transmitted to the customer’s bank.” Access to funds can be reduced from five business days with paper checks, to as low as a single day.

Benefits of Remote Deposit Capture

  • Eliminate time and expense of transporting paper checks to financial institutions
  • Reduced processing costs
  • Quicker access to funds
  • Enhanced cash flow

The Check Clearing for the 21st Century Act (Check 21 Act) created a new negotiable instrument called a “substitute check,” which is the legal equivalent of an original check. Images of the front and back of the original check allow a substitute check to be processed as the original check. Most consumers today are familiar with the convenience of transmitting these images to their bank, often via smartphone app, where it is cleared and settled electronically.

Mitigating RDC Risks

With RDC, financial institutions are unable to examine the physical item being deposited, which increases risk in the check-clearing process. The Federal Financial Institutions Examination Council issued guidance to help financial institutions identify risks in their RDC systems and evaluate the adequacy of controls and risk management practices.

Remote Deposit Capture for Businesses

While a wonderful convenience for consumers, depositing checks via smartphone camera is not a scalable solution for most businesses. Specialized scanners and RDC software enable businesses to take advantage of the convenience of remote check deposit, in a much faster, more automated way.

ACHeck21 offers remote deposit capture, as well as check imaging remittance technology. With ACHeck21 Micro, you can take advantage of the convenience of remote check deposit, but in a much faster, more automated way. ACHeck21 Micro is a check imaging remittance system which converts paper checks to electronic transactions and updates bookkeeping systems. ACHeck21 Premiere is a check imaging remittance system which converts paper checks to electronic transactions and updates bookkeeping systems.