Deposit your Business Checks Anywhere and Anytime
|October 7, 2012||Posted by Steve Webster under Small Business Fraud|
An iPhone app allows users to deposit a check by taking a photo of the front and back of a check. Apparently this new RDC (Remote Deposit Capture) technology has been around for a few years, but I just found out about it. Several large banks like USAA, Bank of America and Chase offer this convenient feature.
If you are using a bank line of credit, I believe that you should deposit your checks as soon as possible to save on interest expense. Imagine that you are at a customer’s business to pick up a check. You can take pictures of the check with your smart phone and have the money deposited immediately. Then you can hand the check back to the customer to avoid having to shred it yourself.
Of course there are some who try to abuse any new technology. Apparently thieves will take pictures of the same check and deposit it at several different banks. Afterward, they’ll transfer the money out once the deposit clears but before the check comes back as fraudulent. I even found one news story of a vendor allegedly depositing checks multiple times. This is an example of why I recommend small business have their bookkeeper reconcile their bank account daily or no less than weekly.
Some banks need to make some improvements to their security to prevent fraud but for the small business owner this technology can help improve your cash flow and save you time of going to the bank.