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June 2010
CheckFaxRDC Compared to Other Remote Deposit Capture Solutions
Imaging of checks, photographic or electronic, in high volume
environments has been around a long time - in check sorters for
example. The Check 21 Act enabled the exchange of check images between
banks, and as a result facilitated RDC (Remote Deposit Capture) from
branches and customer sites. Early RDC solutions focused on customers
with fairly large check volumes and employed fairly costly dedicated
check scanners and PCs. Most businesses and all consumers have a more
modest monthly check volume. These are customers important to the bank.
At LCG we saw the need and filed our initial patent application in
2005, which has evolved into CheckFaxRDC. Since that time dedicated
scanner costs have come down and solutions for the occasional depositor
have emerged including non-carrier based flatbed scanners, and cell
phones. CheckFaxRDC is a very practical solution for those who make
deposits regularly and deposit 100 or fewer checks per month. It works
with fax machines, which nearly every business has, as well as with
general purpose scanning devices, such as flat bed scanners.
RDC involves two basic components: 1) deposit information, such as
found on a deposit ticket, and 2) the front and back images of the
checks making up the deposit. Once the deposit is proved, deposit
information and check images move on into traditional separate bank
processing streams.
At a branch the customer delivers the deposit ticket and checks.
CheckFaxRDC, in its basic implementation does the same thing - fill out
the deposit ticket portion of the carrier, adhere the checks to the
carrier, and fax the carrier fronts and backs, in any order to your
bank. CheckFaxRDC is also a robust solution. It works with fax machines
and general purpose scanners. Deposit information can be captured
through a voice response unit prior to faxing or by entry at a PC.
Captured images of the carrier with the checks adhered can be attached
to e-mails.
Dedicated check scanners are great special purpose devices, but they
are not cost effective for low volume depositors. Dedicated scanners
maintain physical control of the check and thus ensure that the images
of the fronts and backs of checks are correctly associated with each
other. They align the check, image at the appropriate resolution, and
often have automatic feed devices with input and output hoppers. They
also require attachment to a PC and the running of an application,
which works well in a business with an accounts receivable department.
Flat bed scanner and cell phone solutions implemented without a
CheckFaxRDC type carrier have difficulty matching the performance of a
dedicated scanner on a number of important dimensions. Check alignment
pre image capture depends on the user. Scanning the fronts and backs of
checks in order depends on the user. The flat bed scanner solution
requires the device, which many businesses do not have. It also
requires running the application on a PC, possibly interfering with
other work. As some providers note, this is a solution for the
occasional user, and more consumer than business oriented. CheckFaxRDC
can serve the occasional market, but it is not our target.
CheckFaxRDC is a variable cost solution that does not interfere with
other business processes and is very convenient for the 100 and under
check per month depositor. CheckFaxRDC software receives the carrier
images; converts them to the image type and resolution required by bank
standards; and extracts check images from the carrier image. The
carrier assures proper alignment of the check so part of the image is
not lost. Because of a check's small size this can easily happen when
dropped into an automatic document feed of a fax or general purpose
scanner. The CheckFaxRDC carrier has a unique identifier, which enables
the pairing of front and back images regardless of the order the images
are sent. The deposit information is either on the carrier itself or
associated with the unique identifier. On a per check basis CheckFaxRDC
does require more effort on the part of the bank than dedicated check
scanner based RDC, but the customer is willing to pay for that effort
in exchange for a variable cost solution and a high level of
convenience.
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