Remittance is the ability in the United States and Canada to deposit checks into bank accounts from remote locations, such as offices or homes, without having to physically send a check to the bank. This is usually done by scanning a digital image from a check to a computer, then sending the image to a bank, a practice that became legal in the United States in 2004 when Clearing Check for the 21st Century Act (or Check 21 Act) came into effect. This service is typically used by businesses, although remote storage applications for consumers have been developed and have begun to be implemented by a handful of banks. Should not be confused with:
- Direct deposit, which refers to the practice of posting an employee's weekly earnings directly into his bank account.
- Online deposits, which refer to retail banking services that allow authorized subscribers to record a check through a web application and post it, then send an email to a physical check, giving customers access to funds before the check is removed in the normal way. Although this type of service does not involve the scanner or utilize Check 21 Act, it is sometimes referred to as a long-distance deposit.
Video Remote deposit
History
Remittance became legal in the United States in 2004 with the introduction of Clearing Check for the 21st Century Act (or Check 21 Act).
Intended to keep the state finance industry in operation in the event of a catastrophe that could make long-distance transport impossible, such as the September 11, 2001, checks Act 21 makes digital images of legally acceptable checks for destination payments, such as paper checks traditional.
Before 2004, if someone sent a check from one bank (for example, PNC Bank) to an account at a different bank (eg, Bank of America), the banks had to physically exchange a paper check before the money would be credited. to account. But under Check 21, one bank can only send a check image to another bank. Reduction in transport times from the total processing cycle of an inspection provides a longer time for the company to process checks. Often, this additional processing time allows the company to store more goods at cutoffs earlier than they should. In addition, most banks offering Remote Deposit Capture have extended the time limit for the 8:00 pm deposit, while the deadline for regular paper deposit is 4:00 pm. The practical effect of the law is that checks can still be stored and deleted, even if a disaster makes it impossible for banks to exchange physical paper checks with each other.
Maps Remote deposit
Mobile deposit
USAA in 2009 became the first bank to allow customers to deposit deposits with smartphones. Customers use the camera phone to capture front and back of the check image. The image, along with other verification information, is sent to the bank, where the final validation occurs. The customer did not send in the original check, instead of canceling or removing it. According to an industry study conducted in late 2013, only 10% of US banks and credit unions are offering mobile deposits, although more are planning to do so. Some of the largest US banks offer mobile deposits, including Bank of America, Chase, Citibank, and Wells Fargo, and some in Canada, RBC, TD, CIBC, Tangerine offer mobile deposits to Retail Bank customers.
Implications for businesses and consumers
The side effect of the Check Act 21 is that, since digital images from checks are now considered legal documents, bank customers who are paid by check can scan a check image and save it to their account from their home or office if their bank supports doing so.
The Cek 21 supporters claim that the deposit away saves time and money because businesses that use it no longer have to send employees or couriers to bring their checks to the bank. Another potential benefit is reducing paperwork, and therefore reduces the likelihood of making a mistake or losing a check in the process of depositing it. Bouncing checks also appear faster when processed through a remote deposit.
Criticism, and some supporters, argue that the deposit is distant - and with extension, the entire Act of Examination 21 - is the attempt of the banking industry to eliminate the "float," a standard one or two day waiting period between the time a person writes a check and the time the money is actually taken from their accounts. Now checks can be cashed and deleted electronically, theoretically possible for a bank to take money from a checking account on the same day a check is used in payment. This will make the check behave like a debit card, making it impossible, for example, writing a check to pay bills at a grocery store, then rushing to the bank to make a deposit so the check does not bounce. So far, all banks in the United States are still operating with at least one day of floating period.
Use
The use of remote deposits is growing rapidly. A June 2009 survey by the Independent Community Bankers of America group found that 62 percent of banks in the United States currently offer long-term merchant deposits, and 78 percent have plans to adopt the technology in 2011.
Customers' adoption for long-haul deposits is projected to reach 1 million in the next two years, and grow to more than 5 million by 2012.
Some financial institutions receive deposits far through conventional scanners, smartphones, or tablets (compared to MICR scanners). Smartphones and tablets powered by Android by Google, and iOS by Apple.
The banking industry does not keep an official count of how many businesses use national long-distance storage, but, the number is estimated to be tens of thousands. Some independent companies such as ProfitStars, BankServ, Diebold, RDM Corporation and NetDeposit claim to have registered several thousand subscribers, although some large banks have also developed their own systems and ultimately can handle most of the remote deposit traffic.
See also
- Check the Substitute
- Check for deductions
- Lockbox
References
- Little Home Work Can Save Lots of Patent Likes
- Remote Deposit Capture Comes With Some Risk - Brief Explanation of Remote Deposit Capture
- The Bank Is Facing Competition in RDC Space
- Wachovia Company Articles on Importance of RDC
- Overview of the RDC Overview of Remote Deposit Taking
External links
- Full text from Check-21 Act
- List of frequently asked FDIC questions about Check-21 Act
- RemoteDepositCapture.com: Independent Authority on Remote Deposit Removal
- Videos from Remote Remote Sets used in small businesses (via YouTube)
- Importance of Image Quality
- Extend reach and success of remote deposit
- Scanner Check Cleanser to Ensure Accurate Scanning
Source of the article : Wikipedia
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