As soon as more modern payment options began to arrive, the old paper check immediately began to seem outdated and frustrating to receive and process. While other payment methods were increasingly going digital, the check still needed to be processed manually and had to be physically taken to a bank in order to be deposited.
Checks are still in use today, believe it or not, although they have fallen out of favor with most businesses. However, with RDC, they might be about to make a comeback.
Remote Deposit Capture.
Remote deposit capture is a method by which a check can be processed remotely using either a stand or a digital image. Businesses who receive payments by check can implement remote deposit capture in order to turn those checks into profit more quickly and more easily.
Below are some of the common myths about remote deposit capture that have kept lots of businesses from implementing it, and the truth about each issue.
Myth 1 – It’s Only For Banks.
Many people are under the impression that these remote check processing services only exist for banks and financial institutions. However, it isn’t just customers depositing checks into their accounts that can take advantage of remote deposit capture. There are point of sale systems available for businesses that enable them to process customer payments as checks, just as easily as they would process any other type of payment.
If you want to stay really competitive, a mobile remote deposit capture system is the perfect solution for small and midsize businesses. The more payment options you offer your customers, the easier it is for them to give you their money. If you allow customers to pay by methods that your competitors don’t, you have an instant marketing advantage.
Myth 2 – It’s Slow.
For some people, any payment method that is not instantaneous in the way that many electronic payments are will be considered slow. And yes, if you measure remote deposit capture against instantaneous payment methods it is going to come up slow.
However, using remote deposit capture enables many organizations and businesses to process their checks far faster than they would otherwise be able to. Funds are usually received 48 to 72 hours after the check has been deposited. Because the system is largely automated you can send in your digital copy at any time of day to get the ball rolling.
Myth 3 – It Prevents Fraud.
One thing you should understand about remote deposit capture before you introduce it into your business is that it is not a fraud prevention measure. Checks deposited through remote deposit capture can still bounce; there is no initial check against the payee’s account balance.
This is not a flaw with remote deposit capture technology, but an inherent problem with handling checks in any capacity.
In order for your business to remain competitive, it needs to offer customers as many different payment options as possible. Whether shopping online or offline, customers are increasingly expecting to have choices and options. Remote deposit capture enables you to accept an older payment method like the check while still demonstrating that you are a forward-thinking business.