Remote check deposit (also known as Check 21) refers to depositing (electronic) checks into your account directly over the internet eliminating the hassle of visiting the bank at the end of each business day. An electronic check is the electronic version of a paper check and is used to conduct essentially the same transactions.
Remote check deposit was an unimaginable reality not long ago. This has, however, changed with recent developments in technology. Banks all over America are offering tools for converting paper checks to electronic checks. This development is expected to have a major impact on both the banking industry and businesses (of all sizes and industries). Remote check deposit is faster, simple and has a high percentage of accuracy.
Steps for Remote Check Deposit
Following are the steps for remote check deposit:
1. Open An Internet Banking Account – The first step for depositing your checks electronically is to open an internet bank account. This can be done be both by activating internet banking on your existing bank account and opening a new internet banking account altogether.
2. Log On to Internet Bank Account and Scan Paper Checks – The next step to remote check deposit is to log on to your internet bank account and scan your paper checks. Here it is important to note that most banks offering remote check deposit accept all types of checks including personal checks, business checks, government checks, money orders and traveler’s checks.
3. System Verification – Your (online) bank’s system will then check readability of images and will verify the amounts on the check. If you are depositing more than one check at a time, the system will provide a figure for total deposit after all the (electronic) checks have been scanned, verified and transmitted.
4. Check Clearing – The bank will then notify you in case the check is bounced. One of the most important advantages of remote check deposit is that it clears checks faster and informs you about a bounced check in a timely manner.
5. Connecting Remote Check Deposit Services to Your Accounting Software – Remote check deposit services offered by most banks have an inbuilt feature that connects it to your accounting software automatically entering the check amounts (as you scan them) eliminating the need for manual entry. This feature is available for most of the accounting softwares including QuickBooks, Peachtree or Microsoft Small Business Accounting.
Benefits of Remote Check Deposit
Remote check deposit offers a myriad of benefits both to the bank and its customers. These among others include:
1. Reduced Costs and Improved Affordability
2. Faster Clearing of Checks
3. Freedom to Deposit Checks Round of Clock
4. Automatic Entry (of Check Amounts and Details) to Your Accounting Software
5. Reduced Number of Human Errors
6. Improved Reports and Faster Access to Information