Remote Capture is an emerging banking product that enables customers to scan checks and transmit the scanned images and/or ACH-data to a bank for posting and clearing, eliminating the need to physically deposit the checks. The digital deposit is transmitted (usually over an encrypted internet connection) to the bank which accepts the deposit, posts the deposit to the customers account and assigns availability based upon the customers availability schedule.
The basic requirements for an remote deposit service currently include
- a PC
- an internet connection,
- a check scanner, and
- a service provider such as your current bank.
Recent US legislation commonly referred to as “Check 21” makes remote deposit possible. Passed in October 2003 and implemented in October 2004, the legislation allows banks to clear checks based upon images of the original items, instead of having to transport the original check all the way back to the paying bank for clearing. The benefits of remote deposit can be substantial: convenience, reduced transportation risk & cost, better availability, processing efficiencies, the ability to consolidate banking relationships and more.
Remote Capture often has many different names depending on how and where the scanning technology is deployed. These names include “Corporate Capture”, “Merchant Capture”, “Image Deposits”, “Image Cash Letters”, etc. Increasingly, “Remote Deposit Capture” is used as a catch-all phrase for this family of related products and services. The common feature of all of these services is that the paper checks are eliminated from the deposit process and cleared electronically.
For (much, much) more detail see remotedepositcapture.com