Each depositor insured to at least $250,000 per insured bank

Winter 2009/2010

Depositing Paper Checks Over the Internet
New technology turns your scanner or cell phone into a bank teller

Don't feel like walking or driving to your bank to deposit a check? Rather not spend the time and the money to mail it in? You may have a relatively new option — the ability to "deposit" paper checks electronically over the Internet. What you need is a scanner (to capture an image of the check) and a personal computer (to securely transmit the image online), or a cell phone equipped with a digital camera that can do similar duty. And, of course, your bank must offer the service, which has become much more common in just the last year.

Known in the banking and technology industries as "remote deposit capture"or RDC, this service is mostly marketed to small businesses that typically are paid by check and want to be able to quickly deposit those payments. However, consumers also can benefit, especially if they receive a lot of checks and find it inconvenient to go to their local branch or ATM.

"RDC can save consumers time and money because you don't have to bring or mail your checks to deposit them," said Jeff Kopchik, an FDIC Senior Policy Analyst specializing in technology matters. "In addition, RDC allows you quicker access to the funds because checks deposited over the Internet are generally available in one or two business days as opposed to five business days for regular paper checks."

And if you use RDC, Kopchik added, ask your bank how to properly transmit the check images and how to safeguard your equipment and the original paper checks.