It's pretty much like the picture to the right: Feed a check through a scanner, connect to your online banking system, and click to put your money in the bank. There's not much more to it.
This process has been legal since 2004, when Congress passed the Check Clearing for the 21st Century Act — also known as Check 21. The new law made the scanned image of a check
a valid, legal substitute for the paper check itself.
Why did they pass Check 21?
Before the Sept. 11, 2001, terrorist attacks, when you cashed a check, most banks used ground or air transportation to physically exchange the checks with each other for final clearing.
When airplanes were grounded nationwide from Sept. 11-13, lawmakers decided that banks needed a way to carry out the check clearing process electronically — otherwise, an extended disruption in transportation could also bring the country's financial system grinding to a halt.
While the law mostly helped make back-room check clearing easier for banks, a side effect for consumers was that it became legal to make deposits electronically as well. For a more complete history of remote deposit, you can check out the Wiki article on the subject.
The DepositNow system
BankServ is the maker of DepositNow, an all-in-one software and check scanner package that any business can use, no matter who you bank with.
DepositNow works with any U.S. bank account, so you don't have to switch banks or open a new account.
At $225.00, Our DepositNow scanner is the least expensive check scanner on the market, and it also works as an ordinary color scanner for photos and other media.
For more complete information about our products, click onthe demo at right or visit www.depositnow.com. If you're ready to sign up, you can begin the enrollment process right now!