Remote deposit is a means of depositing checks into a bank account by converting paper checks to electronic files and sending the electronic file to the bank.  Remote deposit enables the account holder to scan and deposit checks to the bank electronically from almost anywhere as long as they have the capacity to scan the check which converts into an electronic version of the paper check.

Remote deposit can be accomplished by using a scanner and computer or Smartphone that takes a picture of the check and transmitting that image.  Remote deposit is also commonly referred to as remote deposit capture.

The Check 21 Act is the foundation that supports remote deposit services.  Check 21 is a federal law that allows banks to process checks using digital images rather than relying on just the paper check in an effort to reduce the transfer and processing of checks cut back on the time to clear transactions. 

Most banks allow a wide variety of checks to be deposited with remote deposit including personal checks, business checks, cashier checks, traveler’s checks and government checks.  General exceptions to the types of checks that can be deposited using remote deposit include: money orders, third party checks and foreign checks.

Banks benefit from remote deposit services because it lowers their processing costs, clears deposits and checks faster, adds an additional service to customers, can extend their geographic reach, and may assist in earlier detection of fraudulent activity.

Consumers or users of remote deposit capture can benefit by saving time and money with fewer trips to the bank, faster funds availability, identify NSF or fraudulent checks quicker and make later cut-off times for deposits.

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