Remote Deposit Capture is the Century’s Most Important Financial Development
Since its invention in 2004, the Federal Reserve has regarded the system of Remote Deposit Capture (RDC) as, “the most important development the (U.S.) banking industry has seen in years.”
In line with its integration, almost all Request for Proposals (RFPs) Cash Management Group has quickly started investigating and adopting this new process simultaneously. At a glance, the benefit of RDC only involves a better and faster way to deposit a check from any location. But, internally, the whole effect of RDC to the industry is way more than just check transfers.
FrandsenFinancial.com shares more information below.
A Critical Banking Solution
With the demand for 24/7 global transactions, all developing US-based banks are consistently in the race of providing the best remote check transfer solutions. That’s why RDC has now become a necessity for banks to survive and prosper in the industry. But, while the requirement for an RDC consists only of a computer, Internet connection, scanner, and SaaS (software as a service), there are intricacies that must be addressed first.
Legislation and Variants
The way RDC works is simple: the checks that you will be receiving from the bank are scanned to create digital deposits. After the service provider sends over the digital deposit to the RDC bank, the funds will then be available. What makes this trouble-free system possible is the Check 21 legislation, which was implemented in October 2004. The legislation highlights the following benefits:
- Reduced transportation risk & cost
- Better availability
- Processing efficiencies
- Banking consolidations and more
The Remote Deposit Capture process would depend on the protocols set by the bank and the service provider. But, the basic flow of RDC is as follows:
- A company receives check-based payments.
- The company scans the check to create digital deposits and sends it over to their RDC-preferred bank.
- The value in the digital check will become available on the prescribed terms of the service provider.
Remote Deposit Capture not only boosts the process of business cash flow, but it also sustains, supports, and caters to the growth of global economies.