Remote deposit, also known as mobile deposit, is a service offered by banks that allows customers to deposit a check into their bank account from a remote location, without having to physically deliver the check to the bank. Instead, customers can use their computer, tablet, or smartphone to take a photograph or scan an image of the checks front and back, endorse it with a signature and the phrase "for deposit only," and submit it electronically to the bank over the internet or a cellular network. Remote deposit capture (RDC) technology helps to streamline and improve the efficiency of one area of bank operations: processing check deposits.
Here are some key points about remote deposit:
- Remote deposit capture lets banking customers use their computers, tablets, or smartphones to conveniently deposit checks.
- The process eliminates trips to the bank, and checks can be deposited 24/7, not just during regular banking hours.
- Individuals might use remote deposit capture for their paychecks, gift checks, refund checks, and any other checks they receive. Businesses might use the technology to deposit checks they receive from their customers.
- Remote deposit capture is not only more convenient for bank customers; it also benefits the banks themselves. Banks don’t have to transport physical checks and don’t have to pick up physical checks at ATMs as frequently. They can attract new customers who want the convenience of remote deposit capture, and they can more easily work with clients.
- Remote deposits became legal in the United States in 2004 when the Check Clearing for the 21st Century Act (or Check 21 Act) went into effect.
- Initially, remote deposit capture (RDC) was used primarily by businesses. Check scanners were priced between $250 and $2,500 and were either purchased by the business or rented from the bank. These businesses were also often required to pay monthly fees or maintain a minimum account balance to reduce the risk of fraud.
- Remote deposit use has grown. A June 2009 survey by group Independent Community Bankers of America found that 62% of banks in the United States offered merchant remote deposit, and 78% had plans to adopt the technology by 2011.
