Remote deposit capture (RDC) service allows individuals to deposit cheques through a phone camera. The front and back photos of the cheque and the amount are sent to the bank without storing any data in the phone. The mobile deposit amounts are restricted to avoid a bank’s liability if someone deposits a cheque in one bank and cashes it in another. RDC was first developed for commercial clients in the US in 2004 and made available for individual account users in 2012. Daily limitations range between $1,000 and $2,000.
FAW: Deposit Cheques with Your Phone using Remote Deposit Capture
With the ever-growing trend of mobile banking, several banks have introduced a new innovative feature known as ‘Remote Deposit Capture’ (RDC). This technology allows you to deposit cheques from the comfort of your home by simply taking a picture of the front and back of the cheque using a phone app. The pictures, along with the amount, are then sent to the bank which clears the cheque. It was first developed in the United States in 2004 specifically for commercial clients, but it has since been made available to individual account users in 2012.
WHAT: Depositing Cheques with RDC
The process of depositing a cheque with RDC begins by logging into your mobile banking app on your smartphone. Then, select the “deposit cheque” tab and follow the instructions provided. You will be asked to take a picture of the front and back of the cheque using your phone’s camera. Be sure to check the image before submitting it to the bank. Once the cheque and the amount are captured, they are sent to your bank for processing.
One notable aspect of RDC that you should be aware of is the maximum amount you can deposit. This is done to restrict the bank’s liability in case someone deposits a cheque into one bank and physically deposits or cashes it into another bank. The daily limitations are typically set at between $1,000 and $2,000 per day.
Advantages of RDC
One of the obvious advantages of RDC is the convenience it provides. You no longer have to visit a physical bank branch to deposit cheques; all you need is the app on your phone. This method can also be less time-consuming since it eliminates the need to travel to and wait in line at the bank branch.
RDC also eliminates the risk of losing cheques when mailing them, which can happen while waiting for them to clear. Your personal information, including your address and phone number, will not be stored by the phone or bank, thus providing you with extra security.
Conclusion
Remote Deposit Capture is a revolutionary, time-saving process that simplifies the act of depositing cheques. You can do it from the convenience and safety of your home, thanks to the mobile banking app on your phone. However, while this process is secure and convenient, it has its limitations. Be sure to stay up to date with your bank’s policies regarding the maximum amount you can deposit every day.
