The Green Sheet Online Edition
July 14, 2008 • Issue 08:07:01
Check ease in the back office
With 24 million businesses in the United States and only about 1 percent employing remote deposit capture to electronically enhance check processing, the vertical market for RDC is wide open.
Houston-based EZCheck launched EZDeposit for the remaining 98-plus percent small and mid-sized businesses that still handle paper checks the old fashioned way.
EZDeposit allows merchants to process and deposit checks via personal computer from the comfort of their back offices, never having to physically take the checks to their banks.
EZDeposit comes in two formats: single-feed and high-volume batch solutions. The single-feed solution is for businesses that receive a small amount of checks, fewer than around 30 per day.
For merchants who receive more than that on a daily basis, the high-volume batch solution is ideal; up to 90 checks can be placed on a tray and run through high-speed imagers manufactured by Panini North America Inc. or Digital Check Corp. The checks are read and imaged in little more than a minute.
In both solutions, the imagers read the checks front and back. The high-volume solution also provides technology to read and import the dollar amounts off each check.
The benefits of EZDeposit include:
- Improving funds availability on check deposits
- Reducing or eliminating check deposit and return check fees
- Increasing collections on nonsufficient funds checks
- Mitigating risk by providing return information faster
- Eliminating or reducing deposits to multiple banks, and the associated fees
- Lowering administrative costs
Don Singer, Senior Vice President at EZCheck, said potential for implementation of RDC among small and mid-sized merchants exists because banks do not cater to that market.
Singer said EZDeposit is tailored toward those merchants, unlike the banks' RDC services for large merchants.
"What the banks initially rolled out to their customers, they said, 'OK, here's the software. You image all your checks straight to me, your bank,'" he said.
"And what we had to build was a system that could go to any bank."
EZDeposit is unique in that "we don't care who the merchant's bank is, we'll image the check, build that image file and then we'll settle it to their bank for them, whoever their bank is," Singer said.
EZCheck's reseller agents receive buy rates on service fees and transaction fees for the accounts. Any revenue over the buy rate EZCheck pays to agents.
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