Are there any downsides to remote deposit capture?
There is some potential risk for insider fraud, but there are ways to mitigate it. Typically, remote deposit capture services prevent problems or issues with insider fraud within a company, unless all access is assigned to one individual and he or she has full control of the information and transaction initiation. It’s important to have a separation of duties to reduce the risk of fraud.
Also, banks usually provide training on how to use the system and the best practices to reduce fraud. They will also provide you with a contract defining who is responsible for what. During the time frame that you are responsible for the physical checks, make sure you have a policy about where you store them and how you destroy them.
Is there a risk of consumers’ personal information being compromised with this process?
A consumer’s checking account number is on the check whether the check is taken to a bank or scanned at a remote location. All programs are encrypted and password protected to ensure security and protection of information. The bank’s contract usually defines how the physical checks should be stored and then destroyed after a certain period of time.
Does using remote deposit capture require a financial investment?
Yes. There is the cost to rent or purchase the scanner and there may be some per-item costs, but they tend to be lower than when presenting paper. For most businesses, there is a cost savings with using remote deposit capture.
The cost of scanners is similar to the cost of a modest PC or copier, and there are minimal increases in operating costs in most cases. The product can pay for itself very quickly by increasing productivity and decreasing transportation costs.
The product also may speed up your cash inflow because it allows you to conveniently make deposits every day, providing you quicker access to your money, which, in turn, may reduce your borrowing costs or increase your interest income.
Heather Levingston is a vice president and business deposit consultant with Wells Fargo Bank. Reach her at (713) 206-4949 or [email protected].
