How Remote Deposit Capture Works
Who Uses Remote Deposit?
Businesses: Businesses were the first users of remote deposit technology. Organizations see a large volume of checks, and they need to get funds available quickly for operations, payroll, and expansion.
Individuals: Consumers also appreciate the convenience of making remote deposits. Busy individuals now demand accounts that enable them to deposit checks with a mobile device, saving trips to bank branches.
Other organizations: Nonprofits, government bodies, and other organizations use remote deposit. The technology is widely available, and organizations can choose less-expensive services and hardware options when that makes the most sense.
How Remote Deposit Capture Works
Imaging: To deposit checks remotely, you need to capture an image of the check. You send the image to your bank, and your bank begins the process of collecting money from the check writer. As a result of Check 21 legislation, your bank converts those images into a substitute check, which can replace the original paper document.2
Check scanners and mobile devices: Traditionally, businesses used dedicated check scanning machines. Remote deposit scanners can cost anywhere from a few hundred to a few thousand dollars, depending on your needs (such as how much volume you process). Some banks charge a monthly fee for a scanner, and some provide a free scanner as a promotion to gain your business. But, expensive scanners are not always necessary. For low-volume users, some banks let you use a standard computer scanner, a fax machine, or even your phone’s camera to capture images.
Data entry: Depending on your service provider, you may need to enter the amount of your deposit, or the remote deposit system may handle all of that for you. Artificial intelligence is improving the accuracy of automated reading, and the higher number of checks you process each month, the more you may appreciate that function.
Post-scan: After scanning, keep the paper checks until your bank allows you to destroy them. Banks may need to see a better image, and they may even require a paper copy of certain checks. Follow your bank’s instructions, and be sure to set up a process that helps you avoid depositing the same check twice.
Funds Availability
A primary benefit of a remote deposit service is that you can ignore “banking hours.” Most banks allow you to process your checks late into the evening (until 10:00 p.m. or so in some time zones) to beat that day’s deposit cutoff time.
In many cases, your bank makes funds available to you within one business day (although you’ll occasionally face holds).
The Balance | Justin Pritchard
May 30, 2025
