Payments Insider

Dear Valued Merchant:

Now, there’s technology to help you expedite the typically tedious and labor-intensive check deposit process — and, at the same time, improve your cash flow.

The technology — Remote Deposit Capture (RDC) — is easy to use, eliminates bank runs and yields great business process efficiency.

The benefits of RDC are so significant that we are devoting this issue of Payments Insider, Heartland’s news-based publication that brings you key payments news, legislation and trends, to this revolutionary technology.

At Heartland, our goal is to help you improve your business, so if you have any questions about RDC — or any payments processing matter — feel free to contact us at 866.976.7207 or heartland@e-hps.com.

Best regards,

Tony Capucille
Director of Check Services
Heartland Payment Systems
NEWS ALERT

It’s never been easier to accept checks and quickly convert those payments to cash.

Remote Deposit Capture (RDC) is a tool that enables businesses like yours to accept check payments more easily. This efficient, cost-effective innovation reduces the manual labor associated with traditional bank runs — and deposits the money into your account faster than ever.

The concept is rather simple. Scanners, high-speed connections and secure accounts let your checks clear — electronically — and immediately send money to your bank.

Here’s how RDC works:

  1. You launch a software package on your computer, enter the number of checks for the day and input a control total.
  2. Special image recognition software scans each check, evaluates it for inconsistencies, errors and missing information and automatically creates a "virtual deposit slip."
  3. When the scanning is complete, you electronically transmit the entire deposit batch to your payments processor who automatically credits your account as soon as the same day.

This simple process offers many benefits. RDC:

  • Saves time.
      You can deposit checks without having to prepare them for deposit, drive to the bank, wait in line, verify amounts and handle discrepancies. Eliminating bank runs means you and your employees can stay on site servicing your customers and focusing on your core business. And, you can make deposits any time — 24/7/365 — without ever leaving your office.
  • Accelerates cash flow.
      With the expedited clearing enabled by RDC, funds can potentially be available in your account next-day, eliminating or greatly reducing frustrating "floats" or check holds.
  • Controls money.
      Check processing and deposit fees are reduced. Plus you earn interest on your deposits faster.
  • Increases accuracy.
      Errors — like those made by keystroke — are reduced through automation. In addition, automatic alerts identify duplicate, damaged or invalid checks. Some RDC platforms offer keyless remote deposit solutions that eliminate all reconciliation issues.
  • Let’s you maintain your banking independence.
      Most RDC systems are tied to specific banks, while others are "bank agnostic." The latter will allow you to deposit funds to any bank — or banks — you choose.

Remote Deposit Capture is supercharging the automation of check deposits in America. This is particularly important considering Americans still write billions of checks despite the increasing use of debit and credit cards. In fact, according to ACHResource.com ...

  • In 2004, "only" 60 million checks were processed using RDC. The number jumped to 2.5 billion in 2006.
  • 40% of the U.S. population is totally check dependent.
  • The face value of checks that are written has increased 25% during the past 5 years.
  • 53% of retailers surveyed by Stores Magazine and The Reid System expect an increase in purchases via checks.
  • Check purchases represent 24% of all retail sales.
  • Americans write an average of 25 checks per month.
  • Last year, more than $2.6 trillion worth of goods and services were purchased with a check at the point of sale.

Remote Deposit Capture (RDC) technology has a relatively short history.

In the days after the 9/11 terrorist attacks, the Federal Aviation Administration closed all U.S. airspace for four days. During that time, an estimated $40 billion worth of paper checks were in limbo. Cash stopped flowing. Payments weren’t processed. Merchants didn’t get paid.

A major facet of the American payment system was essentially shut down.

In response to this crisis, Congress passed The Check Clearing Act for the Twenty First Century, a law known as Check 21. Before enacting this law, every paper check was flown and trucked around the country as it traveled from the bank that accepted it to the bank that issued the funds. Now, with Check 21, banks and payment processors are permitted to convert checks into electronic images that can be sent across secure connections. Since its conception, RDC has developed into an important efficiency tool that is changing the way businesses handle check payments.

Heartland Payment Systems’ RDC product — Heartland Express FundsSM — is a unique bank-neutral remote deposit capture system.

  • Express Funds allows you to electronically deposit checks into any bank account or accounts — regardless of which bank or banks you use. This bank-neutral feature enables you to maintain your banking independence.
  • Eliminating floats and holds, funds are available within 24 hours, and, in many cases, by the next-business morning.
  • Express Funds integrates into many accounting systems including QuickBooks™, Great Plains™, Peachtree™ and Accpac™.
  • Express Funds automates the returns process with Internet tracking from deposit through collections. This hands-free returns process provides access to all the information you need to manage the deposit — which, with some other systems, can be cumbersome.

"Heartland Express Funds offers businesses an effective solution for handling check payments that also saves time and money," said Bob Carr, Heartland’s chairman and chief executive officer. "As with all of Heartland’s product offerings, we guarantee the same transparent pricing, secure transactions and dedicated customer support that is a cornerstone of our credit/debit/prepaid card processing and payroll transactions."

If you would like to learn more about Heartland Express Funds, contact us at 866.976.7207 or heartland@e-hps.com.