News You Can Use!

News You Can Use!

September 19, 2007

Zero Dollar Items
Some receivable systems require the issuance of a check even when the balance is zero to avoid receiving late notices. It was determined that these are valid items. However, they can cause operational problems and should be discouraged or even prohibited through the deposit agreement.

Best Practices for Remote Capture
Remote Capture, sometimes referred to as Corporate Capture, is one of the recent products offered by financial institutions of all sizes as a result of Check 21.

Remote Capture refers to a non-financial institution imaging a check, then transmitting that image to its bank for clearing. There are numerous devices that are used for this product. Some financial institutions require their customers use only devices that they recommend or provide, while others are more flexible by allowing the customer to utilize almost any device.

These products are offered by banks who offer various levels of service; from a total turnkey operation to minimum support. Financial institutions that offer this service are recommended to have legal agreements to identify the legal liabilities and risks associated with the product and properly assign those risks. Agreements will also typically include other logistical provisions, like time and delivery of files, pricing, availability, etc. Other organizations' Web sites may provide more information on best practices for Remote Capture.