Seventy percent of business-to-business payments are made by check, according to a 2012 Aite Group survey. Also, nearly six out of 10 consumers in the U.S. used checks for at least some payments in 2010, according to the Bank Administration Institute.
With checks still an integral part of business, remote deposit capture allows your company to deposit checks immediately upon receipt without the need to visit the bank to make deposits.
“Clients can scan checks and send an image of those deposits to the bank for posting from the convenience of their office,” says Korlin Scott, senior vice president and director of Commercial Product Management at FirstMerit Bank. “This eliminates the need to make physical deposits, which provides significant time savings for businesses.”
As payment technologies continue to evolve, remote deposit capture has become an integral component in the collection process. Enhancements in mobile technologies have also opened the door for flexible alternatives to capture and submit checks for deposit, he says.
Smart Business spoke with Scott about how this banking technology can fit your business needs.
How can businesses use remote deposit capture most effectively to save time and money?
Remote deposit capture is a low-cost solution to streamline the collection of check payments and provides a significant opportunity for businesses to create efficiencies in their payment collection processes.
There can be significant cost savings for businesses on a number of fronts. Remote deposit capture allows businesses to reduce their transportation costs of making deposits at a branch and reduce employee time away from work. Perhaps more importantly, businesses can save time by leveraging services that streamline routine activities and allow them to focus on revenue-generating activity.
What are some best practices to follow with this technology?
One of the biggest benefits with remote deposit capture is that it allows deposits to be made from remote locations, but still lets businesses centrally manage deposit reporting and reconcilement. Since deposits are consolidated, business can see dramatic improvements to reconciling payments and make the process of researching deposits much simpler.
Companies also can take advantage of later deposit times, which provides convenience and the flexibility to incorporate the service into their daily business processes. They gain faster access to funds without the security risks of making physical deposits at the bank.
What have banks done to reduce the risk of fraud with remote deposit capture?
Banks are well equipped to manage risks associated with check processing and take numerous steps to mitigate fraud. Since remote deposit capture often provides accelerated clearing, this can help to reduce the risk of fraud by allowing returned check deposits to be identified sooner.
With remote deposit capture, it is critical, however, that businesses also take certain precautions to prevent loss. The most effective measure is to ensure that businesses have strong, effective control measures in place to limit their exposure to monetary risk. These include implementation of policies and procedures for use in remote deposit capture as well as security measures for handling checks after scanning and deposit.
Are there, or will there be, new features available with remote deposit capture?
As technology continues to evolve, the features and enhancements to remote deposit capture will continue to expand. Mobile technology promises to offer unique opportunities for business with respect to collection of check payments. As banks introduce the ability to deposit checks using smartphones, business can benefit from both reduced scanning equipment costs as well as flexibility to deposit payments for services on location, which will be particularly useful for business that receive payment on the road.
Korlin Scott is senior vice president and director of Commercial Product Management at FirstMerit Bank. Reach him at (330) 996-6496 or firstname.lastname@example.org.
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