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Banks
Launch
Remote
Deposit
Capture
Implementation
differences
provide customers
with choices
Ivan
Schneider
May, 2005
Bank
Systems & Technology
Following
are excerpts
taken
from the
May, 2005
edition
of Bank
Systems & Technology
Banks are
launching
services
to allow
commercial
customers
to avoid
trips to
bank branches
to deposit
checks.
Instead,
checks are
scanned
at the customer’s
premises
and the
images then
are sent
to the bank
electronically
and processed
for collection.
The service,
known as
remote deposit
capture,
takes advantage
of the recent
Check 21
legislation
that permits
banks to
clear checks
using digital
replacements
of the original
paper documents.
By accepting
remote image
deposits,
a bank can
work with
companies
that are
located
outside
its footprint.
For Creative
Payment
Solutions
(CPS), a
subsidiary
of BB&T
Corp., the
key to its
remote-capture
process
is making
the product
foolproof
for the
end customer.
CPS incorporated
several
validation
routines
into its
client-side
software,
using technology
from Carreker
Corp. (Dallas).
The vendor’s
scanner
software
interprets
the MICR
line and
verifies
that there’s
a signature
on the check.
It also
includes
courtesy
amount recognition
(CAR) and
legal amount
recognition
(LAR), which
translate
the handwritten
check amount
into a digital
value. So
far, BB&T
and CPS
have achieved
a 68 percent “read
rate” in
a production
environment,
according
to the bank.
Additionally,
the software
detects
whether
a check
has already
been scanned.
By performing
these validation
routines,
CPS hopes
to encourage
adoption
among customers
that may
not trust
the technology.
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