Remote Deposit Capture

Paul FritzEvangelical Christian Credit Union

Product Management

Agenda

RDC OverviewRDC Overview

Benefits & RisksBenefits & Risks

Determining Ministry FitDetermining Ministry Fit

Remote Deposit Capture Overview

Have You Ever Said… Staff spends more time than I would like processing

donations, preparing and transporting deposits

It takes too long from the time we receive the checks to the time the funds are collected and available in our account

I wish we didn't have to transport checks from one campus to another

Why does it take so long to learn about a returned check

RDC Defined

Remote Deposit Capture (RDC):

Service that allows a company to:

• Scan checks through a desktop scanner

• Electronically send checks to their financial institution

• Receive credit for funds deposited

RDC History

Check Clearing for the 21st Century

• October 2004

Checks processed & cleared based upon images

First Generation RDC

• Big Banks/Big Corporations

Second Generation RDC

• Holistic or Integrated Process

What Makes Ministries Unique?

Donations vs. Receivables/Payments

(Donors vs. Bill Payers)

Consistent deposits with varying frequency

Mixture of volunteers & paid staff

Integration of payment & donor information

Effective Ministry Workflow

Open Sort Log DeliverPrepCopyUpdate Day 2

Day 1 Activity - Performed Daily

Current Operations Workflow

Open Sort Log DeliverPrepScanUpdate Day 2

Amount of Work Reduced

Future Operations Workflow: Stand-Alone Solution

Future Operations Workflow: Integrated Solution

Open Sort Scan DeliverCopyUpdateImport Day 2

Amount of Work Reduced or Eliminated

Log

Could Be More Than

Checks

Essential Elements Scanner

• Capture MICR information & check images from checks

• Accompanying documents with contribution instruction

• Can endorse the physical check

Software• Create & submit standard bank deposit file

• Responsible for deposit preparation

• Can be web-based

• Match check MICR to donor record

• Capture donor information & pass to donor system

Essential Elements

Bank• Accept Deposit

• Clear Checks & Deposit Funds to Your Account

Security• Check storage & destruction

• Image & electronic data storage

Donor vs. ACH vs. RDC

ACH

• Consumer checks only

• Less than $25,000

• Opt out

• ARC & BOC

• Capture & send MICR information only

Donor System

• Some scan check & capture MICR

• Some scan check & capture MICR & image

• Some create a standard bank deposit file

RDC

• Any US dollar check drawn on US Bank

• No opt out

• No exceptions

• Capture & send check image & MICR information

Benefits & Risks

RDC Benefits Reduced processing time/costs

Reduced transport costs & increased convenience

Reduced processing float

Enhanced cash flow

Faster notification of returned items

Consolidated banking relationships

Extended deposit deadlines

Simplified research process

RDC Risks Image quality

Un-imageable items

Duplicate deposits

Check storage and destruction

Hardware/channel stability

Fraud

Data security

Determining Ministry Fit

RDC Consideration Checklist

Your goals

Amount of cash

Number of checks

Funds availability

Scanner costs

PC requirements

Contingency plan

Check storage & destruction

Process integration

Special Considerations

Remittance Processing

Beyond The Check

• Use envelopes or coupons?

• Is contribution posting information available from any source other than the envelope or coupon?

What Is Remittance?

• Scan another document with check including payment instruction

• Electronically capture payment instruction

• Electronically post donation to donor / accounting system

Special Considerations

Need for Remittance

Is information to post a contribution available in a source other than the envelope or coupon?

Net benefit of implementing a remittance solution with RDC?

Special Considerations

Donor Solution or Financial Institution?

Is the donor management vendor clearing the checks & crediting your bank account?

• When will funds be deposited?

Can the donor management vendor create an RDC image file “cash letter” for you to deposit?

• Can your FI process a "cash letter" file?

• When will deposited funds be available?

RDC Consideration Checklist

Your goals

Amount of cash

Number of checks

Funds availability

Scanner costs

PC requirements

Contingency plan

Checks storage & destruction

Process integration

Split donations

Envelopes or coupons

Software needs

Donor system integration

Bank integration

Total solution fees (vendor & bank)

Questions?