|
Many financial institutions and industry experts say that perhaps the most important technologically advancement in the banking industry in the past decades by the Federal Reserve Bank in the United States is the development of Remote Deposit Capture services.
According to data, almost all business-to-business (b2b) payment transactions are by way of checks such as Request for Proposals. Most banks in the us, whether big or small has some sort of service in place to offer their business customers because it is more convenient for companies to utilize this type of technology to cut cost associated with dealing with paper check and the process that is involved getting those checks to the bank. Other benefits of RDC are faster and more efficient online data reporting and management.
.Most US banks are jumping into this space by innovating and offering their customers product offering related to RDC. Most people to this day have no clue what Remote Deposit Capture is and some are already using this type of service from their community banks to process checks electronically. Without using industry terms to describe what this is in layman's terms, Remote Deposit Capture is simply a way for merchants to scan checks using either hardware provided by the service provider or with Menexis, we offer a virtual terminal that will generate substitute checks and the checks are then electronically send to the receiving bank to be deposited over a secured internet connection. Sometimes this process is commonly referred to as Check 21.
Check Clearing for the 21st Century Act
In more defined terms, what we offer is what merchants refer to as Check 21. RDC requires some sort of machine or hardware from the provider where as check 21 does not. It uses software in order to generate images of checks by using the name of the bank, the account holders routing and account number. The application is web-base so you don't need people sending you physical checks in the mail to process them remotely. You can take payment over the phone and key the information into the virtual terminal or you can setup integration on your website and have your customers go there to pay you from their checking or savings account. These types of transactions are regulated much differently by the Federal Reserve than ACH transaction which is regulated by NACHA.
There are many banks such as JP Morgan Chase and other who are now starting to offer RDC services to account holder in order in hope that this will facilitate per-to-per (P2P) lending amount friends and family. The service that Chase offers works from an iPhone app that Chase account holders can download and install on their phone. Another company is Jack Henry and Fiserv. Fiserv acquired CheckFree to allow for them to start offering the same type of services Menexis offers to i's merchants.
|
