Capturing business

Do you spend afternoons in line at the
bank? Do you know your bank tellers
by name because you visit them every day? Do you stand in the line running through
a list of things you could be doing at the
office? If you answered “yes” to any of these
questions, there is a way to avoid the lost
time and frustration. Remote deposit capture
is a tool business owners can use to deposit
checks right from their office.

Remote deposit capture is an additional
feature of online banking and cash management services. Businesses scan checks, creating electronic files to make a deposit,
according to Maureen Murman, vice president of treasury management for FirstMerit
Bank.
For business owners, it provides a
secure method of making a deposit to the
bank, while saving time and adding convenience to their work day.

Smart Business spoke with Murman
about the benefits of remote deposit capture and how to determine if the product is
right for your company.

What is remote deposit capture?

Remote deposit capture (RDC) is a
process used to scan checks into images in
an electronic file to speed up the deposit
process and increase overall productivity
for companies. The business uses a specialized scanner to scan customer checks
as they are received. The images are then
combined in electronic files that are transmitted to the company’s bank. The bank
uses the electronic images to process the
checks through the banking system. The
original checks never leave the business’s
office and are destroyed when the processing is completed. The images, however,
remain available to the company via an
online system for future customer service
inquiries and audits.

Who can utilize RDC?

Any company can use RDC. It may be
more advantageous for companies who
receive a large volume of checks or checks
of large amounts. Business owners should
meet with a treasury management banker
to discuss the cash flow through their company in detail. It is crucial that the bank understands your business so that the
banker can help you determine which services will be most beneficial for you. Finally,
customers have to show that they are
financially responsible. The bank has to
have confidence in the financial integrity of
the company.

How does utilizing RDC benefit the overall
business?

Companies operate more efficiently:
On the surface, it saves companies the time
and expense of having to make a trip to the
bank. This product frees the business
owner and his or her employees to use
their time more productively.

Consolidated banking: Many companies have more than one location. If RDC is
used, then each location can scan the
checks it receives to be deposited into a
single account at one bank. This also
means that the owner or accounts receivable manager at a home office can see all
the images deposited into that account.

A company has a broader choice of
banks
: Because electronic files can be
transferred to any banking location, a
company can choose virtually any bank it wishes. This may allow the owner to negotiate better rates, loan terms and other
deals that benefit his or her business.

Increased security: In some areas, it
may not be safe for a person to leave the
office with the checks and transport them
to the bank. With RDC, the owner or
employee doesn’t have to leave the office.
It also may reduce the risk or company liability since the employees do not have to
travel.

Time constraints are decreased: You
can make deposits any time of the day.
Most banks provide a longer banking day
for RDC than branch office hours. Even
after the extended RDC hours, you can
make your deposit for posting the next day.

Errors are decreased: The RDC programs require that deposits balance before
the process is completed. This decreases
errors and makes audits less cumbersome
as information is easily accessed.

Is there a risk of consumers’ personal information being compromised with this
process?

A consumer’s checking account number
is on the check whether the check is taken
to a bank or scanned at a remote location.
All programs are encrypted and password
protected to ensure security and protection of information. The bank’s contract
usually defines how the physical checks
should be stored and then destroyed after
a certain period of time.

Does utilizing RDC require a major financial
investment?

The cost of scanners is similar to the cost
of a modest PC or copier, and there are
minimal increases in operating costs in
most cases. The product can pay for itself
very quickly by increasing productivity and
decreasing transportation costs. The product also may speed up your cash inflow. It
allows you to conveniently make deposits
every day, providing you quicker access to
money. This may reduce your borrowing
costs or increase your interest income.

MAUREEN MURMAN is vice president of treasury management for FirstMerit Bank. Reach her at [email protected] or
(216) 694-5637.