Banks today are offering their customers convenience when it comes to depositing funds in the bank. There are commercial remote deposit services that allow a business to deposit checks from their office, no need to travel to the bank. There are also mobile deposit services. You’ve seen the ads – take a picture and your check is automatically deposited. No need to leave your car, home or wherever you are.
River City Bank has both technologies available today. And while we think they are valuable tools that many business owners and consumers need, we see new risks that could impact your business — even if you don’t use the technology yourself.
Do you void and reissue checks?
What do you do if your employee or vendor returns an original check to you because it is made out wrong? If your business practice is to void the original check before reissuing a new one – think again. You might be voiding a check that has already been scanned to the bank for deposit.
- A vendor may scan the check to their bank for deposit using commercial remote deposit. When they do that, they retain the original check.
- An employee may take advantage of mobile deposit by sending a picture of their paycheck to their bank. Again, they would retain the original check.
How can you protect your accounts?
- You can no longer assume by holding the original check that your account is protected.
- Never reissue a check until you verify your account to see if the check has cleared. If it has, you will know not to reissue.
- If it has not cleared, place a stop payment on the original check before reissuing a new one. That check may be deposited remotely and will clear that same day. Don’t take a chance. Place a stop payment every time.
Getting calls from employees saying their bank rejected the check you issued?
Many more consumers are taking advantage of the new mobile deposit technology, but they often fail to follow their bank’s rules of proper endorsement, scan quality, etc. When the mobile deposit is rejected by the bank, the employee may assume it’s a problem with your account.
If you are asked about a rejected check, don’t fret. Ask your employee to get a specific reason for the rejection from their bank. This small step may save you and your employee a lot of time and heartache.
Have you considered paying employees and/or vendors by direct deposit?
It’s safe, secure, more efficient, and no paper checks to deal with!
Running a business is hard work. You need to keep your efficiency as high as possible to remain in the game. Your friends at River City Bank want to make sure you are aware of the possibilities that this new deposit technology brings us. As always, feel free to contact us or visit the bank if you have any questions or would like to discuss your options!