If you dread going to the bank and standing in line to deposit a simple check, you'll be happy to hear about the latest innovation in the financial industry. Digital deposits, or remote deposit capture is a method for consumers and small businesses to deposit checks remotely, from a home or office for example, using an image scanner. Simply upload a check image to your bank's website, and presto, the funds are in your account.



Making Digital Deposit Possible

Four years ago the US government passed legislation that allowed banks to bypass physical processing, in favor of images of checks. The bill was designed to make check processing much more efficient as it would eliminate the need to courier or ship physical copies of checks from bank to bank. Now an image a check was considered just as valid or legal as the actual check itself.

Companies like CheckFree quickly recognized the opportunity to extend this new legislation to the benefit of the consumer so they began developing solutions that would enable banks to offer remote check image scanning on a wide scale.

Image Check Deposits Step by Step

It is an extremely simple process that requires only a standard computer, an Internet connection and a scanner. Most Inkjet printers sold these days include a scanner as part of their "all in one" models.

1. You have received a payment via check that needs to be deposited.

2. You simply scan the front and back of the check on your home scanner.

3. You log on to your bank's secure online banking portal.

4. Visit the remote deposit, or digital check deposit page.

5. Complete the form with the basic information about your check: date, amount & basic routing numbers from the bottom of the check.

6. Upload, using a simple point and click, the images of the check.

7. Complete the process, once you see your image online.

8. Behind the scene your bank processes the check electronically very similar to the way a physical check would be cleared.

That's about it. Depending on your bank and your personal relationship with them, you may see the funds in your account anywhere from instantaneously to a couple days (normal check cashing time frame).

Reasons to Remote Deposit your Checks

Safety - there is no risk of losing the check or having it stolen in transit to the bank.

Speed - banks should be able to process check transactions quicker when they come to the bank in electronic format.

Time - this deposit can be done in a couple minutes without having to get into your car and drive to a bank and stand in a long line.

Freedom - with so much of banking now done electronically, having to deposit checks in person or in an ATM was one of the last reasons to ever visit a bank.

What are the Potential Pitfalls?

Security - just like any other bank transactions, this will attract attention from potential fraudsters, which will probably deter some people from using check images.

Digital image check deposits really do represent a major breakthrough in banking. The dreaded bank line is one of the biggest consumer complaints and depositing checks was one of the last reasons why consumers and business owners had to actually visit a bank. While currently only about 20% of banks are offering image check deposits, that number is expected to rise quickly due to strong demand from banking customers.