Remote Possibilities

Some banks implement an underwriting process that’s similar to a loan application. Premier Bank does a site visit—to examine security procedures and generally become familiar with the company—as well as credit checks of the business and its principals before it offers remote deposit, Carnes says.

Once a business is using remote deposit, Wilson says, banks look for any unusual activity such as deposits that are much larger or smaller than usual. “We get familiar with their ordinary routine pretty quickly, and we’re looking for things that are out of the ordinary,” she says. “If we find them, we’d be in contact with the customer immediately.”

Ultimately, the customer is responsible for any misuse of the system, so it’s important that businesses implement safety procedures. “You’ve got to have an honest employee making the deposit, because that employee is responsible for destroying the checks and keeping the secure transmission password safe,” Hults says.

At College City Homes, Chlan has several layers of confidential pass codes: one to use the computer, a second to use the remote capture software, and a third to transmit a transaction. Her scanner inks each check as it’s deposited, which helps prevent an accidental redeposit.

In addition to keeping pass codes confidential, a company also needs a secure place to store deposited checks before they are shredded. MetroConnections, a Minneapolis-based event coordinator, uses an in-office safe for this purpose, says President Sam Thompson. He, his finance manager, and his human resources manager are the only ones with the combination.    

Of course, an honest employee can still lose track of which checks have been deposited, and that can lead to accidental re-deposits. Even if the mistake is an honest one, it’s the customer’s responsibility to fix it. “We stress that heavily with our customers,” says Erik Anderson, Marshall & Ilsley Bank’s vice president for treasury management services. “Depositing twice creates a mess. They’re responsible.”