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Remote Deposit: Now the Rule, Rather Than the Exception


If your company is still making daily trips to the bank to deposit customer checks, it may be time to stop.

Remote deposit – technology that digitizes checks on your desktop and deposits them directly into your account – was once considered a novelty. Now, small business owners are finding remote deposit can provide tangible improvements to their cash flow and create efficiencies to help their companies remain viable.

Between 2004 and 2008, in fact, the number of remote deposit capture scanners installed at companies went from zero to a half a million, according to Boston-based research firm Celent, with growth in 2008 alone reaching a 65% compound annual rate. By 2014, the number is expected to balloon to nearly 5 million.

And it’s not simply convenience that is driving the growth. Remote deposit is an example of an automated, environmentally friendly banking technology that makes good business sense as well.

It saves the time and expense associated with bank runs, photocopies and couriers, and enables small businesses to make deposits immediately rather than holding them until it’s worthwhile to make a trip to the bank.

Processing checks electronically, rather than as traditional paper deposits, means you gain access to funds faster, improving cash flow. You’ll also be able to identify returned items and begin the collection process sooner as well.

Remote deposit offers still other benefits to the back-office deposit process. It guarantees that batches of checks are balanced prior to submission. It improves both the timeliness and the accuracy of financial reporting. In if you have multiple locations; it may reduce your need to maintain multiple bank accounts and funds concentration systems.

Plus, it requires little or no upfront investment. In many cases, all you have to do is plug a small scanner into your computer and download a driver from your bank’s website. Minutes later, you can be processing deposits. It’s like having a secure dedicated deposit window you can use any time you’d like.

While not every bank offers remote deposit, and every system is a little different, most share come common characteristics.

How does remote deposit work?
A special check-sized scanner – usually provided by the bank – connects to your computer. Users are usually pleasantly surprised by the scanner’s compact size. When users wish to deposit check, they put it the scanner, which takes digital images of both sides. Software verifies the image and deposits the amount of the check into your bank account using a secure, encrypted Internet connection. Check images are also stored in a searchable database on your computer for easy reference. So you’ll save on paper and storage costs, too.

When can I make a remote deposit?
Deposits can be made at any time of the day or night. To find out when the funds become available to you, check with your financial institution; every bank is different. At Commerce Bank, for example, checks that are scanned and deposited by 7 p.m. are available the next business day.

Is there a limit on how much I can deposit?
Most banks have per-check caps and daily limits; ask your bank about its policies.

Will remote deposit work with my business accounting software?
In many cases, yes. For example, Commerce Bank’s web-based remote deposit solution can be used with or without accounting software. We also offer a solution that syncs up with programs such as QuickBooks® and Peachtree, which helps streamline the accounting process to save even more time and money.


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