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Merchant Benefits of Remote Deposit Capture

Posted by Brandon Weaver | Mon, Apr 28, 2014 @ 10:00 AM

Panini Ideal Check Imager

Remote Deposit Capture (RDC): What is it, how does it work, how will it benefit my business, and what else do I need to know?

What is Remote Deposit Capture?

Introduced in 2004 as part of the Check 21 Act, RDC is the efficient process of depositing a check into a bank account from a remote location without having to physically deliver the check to the bank.

How Does Remote Deposit Capture Work?

RDC is accomplished by scanning a digital image of the check and transmitting that image to the bank.

What are the Benefits of Remote Deposit Capture for My Business?

  • Receive funds 48-72 hours faster than with a manual check deposit
  • Process checks 24/7, at your convenience
  • No time at the bank waiting in line
  • Less time spent processing checks
  • No $ spent on gas

What Else do I Need to Know?

Myth #1: Only Financial Institutions and Cell Phones Have RDC Capabilities

Fact: Any person or business, whose bank or check processing provider supports it, may use RDC. The instrument that makes it possible can be a cell phone or a tablet tied to an RDC application, or as is the case with businesses using a check service provider, a check imager at the point of sale and/or connected to a PC. The process for using a check imager is:

  1. Sign into your merchant account
  2. Run the check through the check imager
  3. The imager takes two pictures of the check, front and back
  4. The images are uploaded to our image archive and the merchant’s account is sent an Electronic Funds Transfer for the amount of the check
  5. Finally, we present the images to the Federal Reserve

Here’s a 3-minute RDC demonstration video:

Myth #2: Non-Sufficient Funds (NSF) checks (a.k.a. “bounced” checks) are eliminated using remote deposit capture.

Fact: Remote deposit capture does not eliminate these checks so you may still encounter them. The primary benefit of using RDC is to reduce your time and money spent on preparing and processing check payments. If the business has remote deposit capture with check guarantee, they do not need to submit anything. The funds will be debited back to the check guarantee service provider and the merchant will remain whole. NSF checks can be very frustrating for business owners and be a huge profit killer to your bottom line. In reality, bad checks cost you more than their face value.

Ask yourself, “What are my losses from bad checks and what’s my net profit?”

Myth #3: Remote deposit capture requires check imagers that cost hundreds and thousands of dollars.

Fact: Financial institutions vary on what they charge to get RDC up and running for a business. The FDIC states check scanners cost between $225 and $2,500. Some check service providers that provide remote deposit capture will offer free loaner equipment, which eliminates this objection altogether.

You work too hard as a manger finding business solutions that make you money, save you money, and make your life easier on the job. Let remote deposit capture take a load off for you. Coupling RDC with check guarantee not only saves you time and money but it mitigates risk, too, as told by current merchants using the service. 

Topics: Remote Deposit Capture (RDC)

Written by Brandon Weaver