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Topic: Mobility

The Future Of... Check Deposits

Summary: Tired of carrying checks in your wallet because you can't find the time to cash them? Texas-based USAA bank has developed a mobile application that allows customers to make deposits using an iPhone. ZDNet correspondent Sumi Das explains how mobile banking could put an end to those time-consuming bank branch visits.

Topics: Mobility, Banking, Wi-Fi

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14 comments
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  • RE: The future of check deposits

    Pardon me for being completely skeptical of this trend.

    I am not comfortable with the idea of not getting a written check back in your bank statement - especially for a business account.

    I have always posed the question - [b]without the original, how can you prove a check has not been forged?[/b]

    No banker I have ever spoken to about this has a good answer. Is this any safer?

    BTW, while there may be some protections for the consumer, rectifying an error always inconveniences [b]the customer.[/b]
    fatman65535
    Reply Vote

    • images

      the image shows up on line - no need to receive a copy of the check in the mail - please! Even BofA shows you the front and back of the image right on line. As long as an actual check is used, the image - front and back - is all you need.
      lcw928
      Reply Vote

  • RE: The future of... check deposits

    Love it!! Can't wait for other cellphones to be able to use it!
    K_Vip@...
    Reply Vote

  • Um, that's not an iPhone she's using

    She is using an iPhone for the screen shots but a T-Mobile MyTouch 3G phone to demo this. Is it an iPhone app only or will it be available on Andrioid as well?

    <update>I should have waited for the whole video before commenting. She did say BlackBerry and Android versions are "in the works".
    david@...
    Reply Vote

  • Shredding checks?

    Is it just me or would you worry that you've shredded the original and now the bank has decided it doesn't like the image they got?

    While this seems like a great convenience I would certainly worry about security. There are so many variables. It's not just an account owner cashing a forged check how about ppl who have been given forged checks and don't know? Where's the proof if I shred it? What about all the security On the check (magnetic numbers, tiny security print? is that all just cast aside as unimportant? does the camera pick it up?)
    wirelessguyNY
    Reply Vote

    • no more risk

      this is no more risky than all those checks sitting in boxes at the bank - being moved to a central processing location - guess what - they image them and then destroy them. It costs a lot of money. The ATM or phone image will validate that it is good. At that point it is the bank that takes on the ownership. They can't later decide it is a bad image. Once it is an image that is acceptable - all the same rules apply to make sure it is not a forgery...
      lcw928
      Reply Vote

    • Shredding Checks

      Oh man, I agree totally!!! Don't shred those checks until the
      transaction has been totally approved and the money is in your
      bank account!!! What does it hurt, just save those checks in a
      special box and maybe write the date you deposited it thru your
      phone to the bank. Makes very clear sense to me!!!
      grayangelwing
      Reply Vote

  • RE: The future of... check deposits

    At Bank of America and Wells Fargo both, this is exactly what they do at their ATM machines. There is no envelope, you put the the check into the ATM, you get a receipt with an image of the check and that's it. The "Check 21" law mandates that all checks be processed electronically, so they take the image and I believe discard the paper copy.
    Valicore
    Reply Vote

  • What prevents one from depositing same check at another bank?

    This looks really cool and I have a USAA account so I will definitely try it,
    but I wonder what prevents a customer from depositing the same check
    at another bank? Is there an interlink in place so all banks know that the
    check was already deposited somewhere else?

    (I'm sure they must have thought of that, but it was not addressed in the
    story.)
    khammo01
    Reply Vote

    • No Difference than with "Physical" Check

      A specific check is defined by the ABA and account number, plus the check number. All checks are verified by the institution upon which the funds are drawn. For most institutions these days, the verification occurs in real-time; this is of course dependent upon the check receiving institution and the institution with the funds both supporting modern electronic checking systems. It is very rare for physical checks to actually be sent anywhere; many larger stores for example will themselves truncate (convert to electronic and shred) the checks right at the store. The cashier will scan the check and it will go through immediately as a debit. Attempting to reuse a check number in any way would lead to immediate rejection and flagging of the account for possible fraud activity. This also makes things like check kiting (writing a check on funds that you do not yet have available) much more difficult than in the past. In addition to the real-time electronic verification, most institutions still place holds on funds deposited by check, usually for 7-10 days, to allow for manual verification; a practice that began decades ago.
      smiller987
      Reply Vote

  • RE: The future of... check deposits

    Great idea, but I think you still need a pen to endorse the check on the back before your take the photo of it.
    randallian
    Reply Vote

  • New Twist, not NEW Feature

    As a USAA customer for years, I have to say I'm disappointed by
    ZDNet's take. -- The iPhone app is simply a new version of an older
    web-based application.

    USAA has offered this basic functionality (imaging your own checks and
    uploading them) for years -- with a Java-based web app called
    Deposit@Home. You scan your check on your digital scanner, and
    upload (after cropping appropriately) the image to their servers.

    It's actually the reason I moved from using them for just my auto
    insurance to opening a bank account with them. It was so much more
    convenient than taking any checks I got to my BoA branch or even
    ATMs.

    I haven't ever had to mail in a check like she said... though I'm sure
    people did have to up until Deposit@Home was started.

    Also, as noted by some posters:

    Yes, I've always kept the check for a week or 3, just to be on the safe
    side that they don't complain about your image and not actually credit
    your account... although I've never had that happen after the
    application accepted the image. But I never "VOID" or destroy the check
    until a short period afterwards -- just to be on the safe side -- despite
    it apparently not being necessary.

    Yes, there are processes in place to make sure you can't deposit the
    check elsewhere... The originating bank (the one who is paying the
    money out of the check signer's account) will not honor multiple
    payments from the same account and with the same check number. --
    And I'm sure if you start trying, USAA will help them prosecute you
    fully. After all, they have all your vital info from when you opened the
    account -- and you have to be signed in to your own account to use
    the Deposit@Home and Deposit@Mobile applications -- so they always
    know exactly who you are if you were to try anything like that.

    Yes, they require you to endorse the check before taking the image --
    and at least with Deposit@Home they want you to include "Deposit
    Only" and the account number you're depositing into. I endorse them
    first, do a scan, and then just have a digital stamp (image with
    transparency) with the appropriate text that I layer onto the check
    scans before uploading them on the web site, so it's quick and easy
    each time.
    Jamescat
    Reply Vote

  • RE: The future of... check deposits

    Now they need to release the application for real smartphones as I am not stupid enough to spend money on an iPhone, Blackberry or an Android based phone.
    jfreedle2@...
    Reply Vote

    • Sorry Pal, Those are the Popular Platforms on Planet Earth

      @bigjim01@... Go find another planet with life, maybe they'll have your imaginary so-called <i>"real smartphones"</i>.

      Talking about being stupid, you saying that the people who could afford those smart phones are stupid? That kinda makes a fool out of you :|
      MrElectrifyer
      Reply Vote
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