Check 21 & Desktop Deposits - RDC:
How does Check 21 work with CheckWriter™?
What is a desktop deposit and can I use it?
Can I use remote deposit capture?
Can I use Check 21 to expedite deposits.
Will Check21 automatically deposit my check?
CheckWriter™ software is stand alone, and creates a physical
draft of the customer's check for deposit. The Check
Clearing for the 21st Century Act, known as "Check 21" enables
banks and merchants to move check payments more quickly, and
convert them into electronic items, as well as create substitute
created by the merchant with CheckWriter™ is treated just like a
regular check you receive
through the mail or over the counter. All of the Check 21
regulations apply to drafts. This facilitates the use of desktop
scanners to create desktop deposits, and also allows for electronic
check conversion, and substitute checks to be created.
What is "Check 21"?
This is the actual law that allows for check drafts to be
converted for desktop deposit, converted to substitute checks,
or converted into electronic debits using electronic check
Desktop Deposit Systems and Remote
Deposit Capture Systems -
If you have a desktop deposit system already in place with your
bank, you can use drafts that you print with CheckWriter™
Brand software along with your current remote deposit solution
if you have a laser printer.
Desktop deposit scanners can take a
scanned copy of the front and back of the check or draft, then convert
that into an image which is sent to the bank for deposit.
The merchant then files or destroys the original check
or draft after it is scanned for remote deposit.
Some banks require the merchant to use an
Optical and Magnetic scanner for their desktop deposit
system, or for
electronic check conversion.
If this is the case, the
merchant may need to use a laser printer, and special MICR TONER in order
to comply with the scanner's requirements. You can
get an MICR printer and Toner to
comply with this bank regulation at the CheckWriter™
Other banks have no magnetic requirements for remote deposit, and allow you to use any
scanner at all, including a flatbed or hand held scanner you may
use for photos.
Chase Bank and Citibank have introduced a iPhone apps
that allow the user to photograph the front and back of a
CheckWriter™ draft and deposit it right into your account from
the phone, with no MICR toner or printer required.
Most major banks already have remote deposit capture or desktop
deposit services available to their customers. Just call online
banking or treasury services and ask for Remote Deposit Capture:
Chase Bank's iPhone system is called "Quick
Bank of America calls their system "Remote
Wells Fargo introduced a system branded "Desktop
Citibank offers "Remote
TD Bank provides "Rapid
Deposit" RDC system
Thousands of smaller banks have remote desktop options for
Regions Financial offers "DeskTop
United Savings Bank offers "Remote
Securant Bank and Trust offers "Securant
North Coast Bank offers "Deposit
Express Desktop Deposit"
Lone Star Bank offers "Desktop
Community Bank advertises "Desktop
Private companies, and not just banks are offering RDC services:
Deposit Now! a private service has "Desktop
desktop deposit system"
Electronic Check Conversion -
Electronic check conversion is a retail application, and is
similar to desktop deposit. Electronic check conversion
does not apply to CheckWriter software and taking checks by
phone because it is designed for stores where people present
checks, and not for businesses that are printing drafts.
With electronic check conversion, a retail
store takes a check from a customer and runs it through an MICR
scanner. The information like Routing Number and Account Number
are verified and stored into an ACH file and transmitted
electronically to the bank. The customer receives back
their check with a notice that it was converted to a debit.
customers, the proper use
of the Check 21 regulations would be to use desktop deposit or
image conversion into a substitute check.
Substitute Check -
Substitute checks are copies of the original check that replace
the original completely. This system allows banks to
convert the check or CheckWriter draft that the merchant prints
into an image, then back to a paper item that becomes the
Direct ATM Deposit -
Bank of America and other banks are starting to offer direct ATM
deposits of checks and drafts. These new ATMs have either an
optical or MICR scanner or both that are built in, and checks
are accepted with no envelope and often credit instantly to the
Some ATMs will accept, scan and convert CheckWriter™drafts
without MICR toner, and some still require it. If you need
an MICR Printer and Toner Cartridge, you can order it from
CheckWriter here. It is
best to try depositing without MICR toner first, thereby
eliminating the expense should your ATM not require it.
What does this mean
for CheckWriter users?:
drafts are as versatile as a regular check. Deposit them in the
ATM, night drop, with your teller or use newer systems like
remote deposit capture to make desktop deposits, an iPhone app, or direct scan ATM. Because
of the Check 21 regulations, CheckWriter™
drafts are even more
widely accepted and are easier to deposit and than ever.
software will allow you create items that comply and work with
all Check 21 regulations including remote deposit capture and
the ability to make desktop deposits though your bank or
Because CheckWriter complies with all
current regulations, and standards, any business can use the software to
take checks by phone, checks by fax or checks online without the
concerns of formatting, or learning complex rules or guidelines.
The Check 21 law and new regulations about image capture and the
ability to make instant, real-time ATM deposits or desktop
deposits, simply expands the possibilities and facilitates faster
check and draft clearing.
Checks by phone:
Learn how to take checks
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