What Are the Benefits of Remote Deposit Capture?
From member-focused commercial lending and deposits to treasury management services, Indiana Members Credit Union is in the business of championing small business. While running a business can be complex, you don’t have to do it alone. In this article, we’re going to take a closer look at one of our most popular service offerings: remote deposit capture.
What Is Remote Deposit Capture, and How Does It Work?
Remote deposit capture enables cash deposits without visiting a brick-and-mortar financial institution. Through remote deposit capture software, you simply scan a check or deposit slip into an electronic image that can then be processed. It’s typically a very efficient and intuitive process, often much quicker than visiting a branch.
What Is the Difference between Remote Deposit Capture and Mobile Deposit?
In most circumstances, “remote deposit capture” and “mobile deposit” are used interchangeably. As noted above, an individual or business uses a remote deposit capture system to make a mobile deposit.
What Are the Benefits of Remote Deposit Capture?
The two primary benefits of remote deposit capture are convenience and efficiency. Dealing with endless paper receipts and deposit slips can be tedious and time-consuming, and doesn't provide any real benefit over using a remote deposit capture service. In fact, not only is remote deposit capture the easier and time-saving option, it also eliminates the risk of human error.
In addition to saving time and money, the adoption of remote deposit capture can also improve the day-to-day lives of employees—who are suddenly freed up from monotonous tasks and able to focus on more important and fulfilling work.
Is Remote Deposit Capture Safe, or Is Remote Deposit Capture Considered Higher Risk?
If there’s one downside to remote deposit capture, it’s the potential for fraud—but these risks can be mitigated with the right security policies and practices.
The primary risk is one that accompanies virtually every tech-enabled business service: the potential for fraud. As the FDIC notes, “certain check security features may be lost or the physical alteration of a deposited check—such as by ‘washing’ or other alteration techniques—may be obscured in imaging or electronic conversion processes. Counterfeit items may be similarly difficult to detect.”
Identity theft represents another potential risk. Once check or deposit slip images become digital, there’s always the danger of unauthorized access to customer and account details. In most cases, remote deposit capture risks can be mitigated by adhering to federal remote deposit capture regulations and cybersecurity protocols. Some of these general practices include:
- Retaining paper checks for your records.
- Keeping anti-virus and other cybersecurity software up to date.
- Having a second set of eyes review deposits to catch errors.
- Maintaining secure passwords.
- Being vigilant to avoid phishing scams and similar cybercrime.
- Regularly performing an RDC risk assessment.
The Federal Financial Institutions Examination Council (FFIEC) provides guidance related to recommended risk assessment practices, noting that the “size and complexity of the financial institution, as well as the relative scale and impact of RDC to overall activities, should determine the appropriate level at which governance, oversight, and risk management of RDC should occur.”
When performed, RDC assessments should “include a determination of the risks to the security and confidentiality of nonpublic personal information” consistent with federal regulations.
How Do Banks Verify Mobile Deposits?
When a bank processes a mobile deposit, it will typically follow a 4-stage process:
- Initial inspection, to ensure that the check image is scanned clearly enough to ensure accurate input within the system.
- Digital imaging, an often-automated process by which the remote deposit capture application securely transmits digital images to the financial institution (in lieu of paper checks or deposit slips).
- Verification, including image review (front and back), account legitimacy and validation, and confirming whether sufficient funds are present in the issuer’s account—with special attention paid to particularly high-dollar transactions.
- Ongoing fraud prevention, to remain vigilant against common and emerging cybersecurity threats and to keep systems and data secure.
Discover IMCU’s Member-Focused Remote Deposit Capture Service
At IMCU, we provide streamlined and reliable solutions for common business needs. In addition to a wide range of commercial lending products and treasury management services, we also provide remote deposit capture.
That’s not all, though. Depending on your specific needs, we offer scanner options based on check volume, extensive search and reporting capabilities, integrated single sign-on with other cash management services, and more.