Remote Check Deposit

Electronic checks: How to deposit checks without leaving your office

By Daniel Kehrer, Founder & CEO, BizBest Media Corp.

Imagine a future where you scan checks on your desktop -- instantly converting paper checks to electronic checks -- and the money is magically deposited into your business bank account via your PC. And while we’re dreaming, why not have the electronic checks launch your accounting software and automatically enter the check deposits and update your ledgers?

Hold on. The futuristic electronic checks solution we're talking about is here right now. It’s called remote check deposit (also known as Check 21) and it’s about to take small business banking by storm.

The tools for creating electronic checks, or echecks, from regular paper checks are being offered by banks nationwide, along with Web-based providers. It’s all amazingly fast and simple. Using a special desktop scanner, you convert checks to digital images, and then deposit them to your bank account via the Internet. The efficiency is jaw dropping, and costs minimal (scanners start at $225, and will probably get cheaper). No trips to the bank. No filling out deposit slips. No making photocopies of checks.

Just logon, scan checks and make electronic check deposits 24/7 of any check drawn on any U.S. bank, including personal checks, business checks, government checks, money orders and traveler’s checks.
Echeck deposits clear faster, and if a check bounces, you’ll know much sooner. Businesses generally hold paper checks for 14 days to make sure there's no problem, and then shred them.
If you need to see copies of your deposited checks, you can search for and see echeck images on your PC right over the Internet any time you want.
You don't need to change bank accounts. Money can be sent to your existing account at the bank of your choice.
Online remote check deposit services can also launch your accounting program (QuickBooks, Peachtree or Microsoft Small Business Accounting) and automatically enter checks in your accounts receivable (A/R) ledger as you scan them. No manual entry needed.

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Enlist an electronic check conversion service to do it all

With an online provider to handle all the behind-the-scenes processes -- called a remote deposit capture (RDC) service -- there's no need to install complicated software or buy expensive equipment - just a check scanner.
Try: DepositNow is a complete Web-based service that can set you up to use remote check deposit to your existing bank. See why it's like having a tiny ATM on your desk, and how the additional accounts receivable service can automatically enter information to help balance your books. The National ACH network is another provider of remote check deposit services.

Time to re-visit Internet banks

If you rejected Internet banks in the past because you wondered how to make deposits, you might want to look again.
Try: Main St. Bank, for example, has a remote check deposit service called MainStreetConnect that clears your funds in 24 to 48 hours.

Prepare yourself to answer customer questions

Clients and customers who write checks to your business might have questions about how electronic deposit of their chekcs to you works.
Try: The Federal Reserve has a handy consumer Q&A about electronic check conversion that can help answer questions your customers might have.

Ask your bank about remote check deposit

More and more banks are offering remote check deposit services directly to small business customers.
Try: Wells Fargo was one of the first major banks to offer remote check deposit services to small business. Check features and benefits of the Wells Fargo Desktop Deposit program. Ask the bank you currently use if it offers remote check deposit services.

Discover more remote deposit resources

With remote check deposit growing fast, independent sites that track news, resources and information on the topic are springing up.
Try: Remote Deposit Capture bills itself as the independent authority on the topic. Most of the resources are geared to industry insiders, but you'll find a wealth of detailed information, news, forums, Webinars, a vendor directory and other resources on the site.

Can't go online right now? Need your computer for other tasks? No problem. Scan checks off line, batch them together and deposit them later online all at once.
Systems can read hand-written dollar amounts on checks.
Remote check deposit was authorized by the so-called "Check 21" law after the 9/11 terrorism attacks briefly brought check clearance to a standstill. Systems and technology to make it work have been built and tested, and banks or other providers are beginning to offer the service to business customers.
Physical location is no longer an impediment to making check deposits at a bank. It will happen electronically, through secure networks.