Process checks from your office through ACH processing and remote deposit capture 

by amy perry Saturday, February 12, 2011
As the world keeps moving at a hectic pace, financial transactions are working to keep up. Checks are becoming a thing of the past and electronic payments have moved into the forefront. A few years ago one would need to visit their bank to deposit a check. Banks were required to verify funds and would eventually make the transfer. Modern technology has created faster, safer ways to send and receive money. Two of the most modern processes of accepting and depositing money into bank accounts are ACH processing and remote deposit capture.

ACH is short for Automated Clearing House. ACH is a federally regulated electronic network of various US financial institutions. ACH is operated by the Federal Reserve and Electronic Payments Network and is governed by the National Automated Clearing House Association. A business will often be faced with a batch of checks that need to be deposited. Through ACH processing banks can process these batches of checks electronically and deposit the money in the business account almost instantly. For ACH processing an individual signs up with ACH payments and that individual’s account is then identified for payments using the account and routing numbers of the bank.

Another form of electronic check clearing is remote deposit capture. This process also allows individuals to deposit checks with their bank without actually having to visit the bank. The checks are scanned and then sent to the bank for processing. Usually, there is an operator that creates a control amount for the total value of the checks. Once all the checks are scanned, their total value is matched with the control amount for accuracy. Some of the modern scanners also stamp each check so that it is not scanned more than once. The scanner captures the check amount and the name of the bank using the magnetic strip at the bottom of the check that has the MICR number. The scanned checks are then sent to the bank for processing.

While most of the financial institutions today are moving into a mode where they accept both ACH processing and remote deposit capture, only about 5 percent of modern small businesses use these processes. With more financial institutions starting these processes and more people becoming aware of the benefits they offer, the concepts of ACH processing and remote deposit capture are gradually catching on. Who wants a lengthy process when deposits and payments can be done sitting in one’s office?

To know whether your bank accepts ACH processing and remote deposit capture, simply call them and ask them about these features. Although very few banks allow individual customers ACH processing and remote deposit capture at the moment, it is a certainty that more banks are going to get on board.

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Save time on check deposits and payments using ACH processing and remote deposit capture.
Related articles on this topic can be found at this blog - profile.typepad.com/amyperry80

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