Monday, May 5, 2008

Remote deposit makes its way to CUs

BURLINGTON, Mass. (5/5/08)--With the high price of gasoline putting a financial crimp in car travel, credit union members are starting to see the benefits of remote deposit, which allows them to scan a check at home, deposit it online and then destroy the check a few days later.

EasCorp, based in Burlington, Mass., is a corporate credit union that offers remote deposit service called Deposzip. So far, seven credit unions in Massachusetts, New Hampshire, Indiana and Oklahoma use the service. Nine more credit unions nationwide are in the process of adding the service, George Dow, Eascorp assistant vice president of product development and member relations, told News Now.

Why does EasCorp offer Deposzip?
"We think it can satisfy a huge need for credit unions," Dow said. "They can't always be everywhere the members are. We believe Depsoszip will help credit unions overcome this problem. Combining this product with other online services, there's nothing a credit union cannot do for its members online.

"Now with an electronic deposit mechanism, the member doesn't need to depend on mail, a credit union branch location or an ATM for deposits," he continued.

Deposzip interfaces with a credit union member's home banking system, Dow explained. The member goes to a link, logs in and follows the steps of the process through a menu. The Deposzip software works with standard desktop scanners--basically scan and deposit--so no special equipment is needed.

Deposzip also works with businesses through merchant deposit capture. Businesses would buy a more robust scanner--a duplex multi-feed scanner--that gives them the capability to scan and deposit several checks at a time, Dow said.

Credit unions pay a transactional fee to buy service from EasCorp. "We developed a fee schedule that is inexpensive enough so that credit unions do not have to pass the cost on to members," Dow said.

The credit union can control access to the program through an administrative platform, Dow said. This way, credit unions can control the deposit limits of individual members. For instance, one member may have a $10,000 per day deposit limit, while another member, who may have a more questionable financial history, might only have a $1,000 per day deposit limit, Dow explained.

"This is probably the least expensive deposit collection channel a credit union can come up with. It's cheaper than getting deposits from mailing envelopes, ATMs, shared branches or walk-ins," Dow concluded.

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