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8/22/2008

Remote Check Deposit
by Timothy Lee, Associate Extension Specialist, UALR Lead Center

Cash flow is crucial to your business. Remote check deposit, a recent banking innovation, assists small businesses in keeping the cash flowing. A 2003 change in federal banking law which allows banks to use check images as legal substitutes for the real thing when processing deposits and payments opened the door for a revoluntionary new banking service.

Diana Holden of BusinessWeek explains;

"To make a remote deposit, business customers log into their account online and then use a bank-provided scanner to read the check. The bank's program captures the dollar value of the check—using hand-writing analysis software to compare the number to the amount that's spelled out. At the end of the transaction, it asks the user to verify the amount, and then completes the transaction."

In addition to accepting remote deposit of checks, many banks extend the deposit time from 2 p.m. to 6 p.m. for businesses using the new remote deposit service.

Banks offering remote check deposit in Arkansas include Arvest, Bank of America, and the Bank of Prescott. Inquire at your local bank if remote deposit is available.

For more information on remote check deposits:
http://www.businessweek.com/smallbiz/content/aug2008/sb20080820_507378.htm?campaign_id=rss_topStories

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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. It is the goal of UALR to eliminate discriminatory harassment and to promote equal opportunity regardless of race, gender, color, national origin, sexual orientation, age, religion, veteran's status, or disability.