See Also:
History of remote deposit
What is the Check 21 Act and why was it passed?
Types of remote deposit
Understanding magnetic ink (MICR)
FAQs
Who can use remote deposit?
Where do I sign up for remote deposit?
How much does it cost?
Remote deposit (also known as remote deposit capture or RDC) is a system for depositing checks online instead of taking them to a physical bank branch or ATM. Some people also call it online check deposit, electronic check deposit, check image capture, or simply check scanning — but the principle is the same: Instead of depositing a paper check in the bank, a customer scans the check and deposits the image instead of the paper. These scanned check images have the same legal standing as the original paper check, thanks to the Check 21 Act passed by Congress in 2003.
Remote deposit is increasingly used by businesses and individual consumers, as a way to save time by making their bank deposits without leaving their homes or offices. Because remote deposit converts a physical process involving paper checks into an electronic process involving check images, many people correctly think of it as a real-world extension of online banking.
Back when it started in the early 2000s, remote deposit was mostly limited to businesses, for two reasons:
- Smartphone banking apps did not yet exist, and few people other than businesses could justify the expense of a dedicated scanner; and
- Concerns over fraud and misuse of remote deposit were high, so banks initially limited the service to their most well-known and trusted customers, also usually businesses.
Around 2010, remote deposit began to reach everyone thanks to mobile banking apps, with PayPal introducing one of the first phone-based check deposit services and others quickly following. A TV advertising campaign by Chase to promote their own mobile app around this time was widely credited with bringing awareness of RDC technology to the masses for the first time.
Digital Check specializes in dedicated remote deposit capture scanners for making images of moderate to high numbers of checks; however, the technology can be used by just about anyone with an ordinary PC and a device capable of creating a legal quality image.
The links below provide a basic primer on remote deposit capture, as well as some of the rules and technology surrounding it.
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