Remote Deposit Capture Paul Fritz Evangelical Christian Credit Union Product Management

Agenda  RDC Overview  Benefits & Risks  Determining Ministry Fit

Remote Deposit Capture Overview

Have You Ever Said…  Staff spends more time than I would like processing donations, preparing and transporting deposits  It takes too long from the time we receive the checks to the time the funds are collected and available in our account  I wish we didn't have to transport checks from one campus to another  Why does it take so long to learn about a returned check

RDC Defined Remote Deposit Capture (RDC):  Service that allows a company to: Scan checks through a desktop scanner Electronically send checks to their financial institution Receive credit for funds deposited

RDC History  Check Clearing for the 21st Century October 2004  Checks processed & cleared based upon images  First Generation RDC Big Banks/Big Corporations  Second Generation RDC Holistic or Integrated Process

What Makes Ministries Unique?  Donations vs. Receivables/Payments (Donors vs. Bill Payers)  Consistent deposits with varying frequency  Mixture of volunteers & paid staff  Integration of payment & donor information

Effective Ministry Workflow Current Operations Workflow Future Operations Workflow: Stand-Alone Solution Future Operations Workflow: Integrated Solution Could Be More Than Checks

Essential Elements  Scanner Capture MICR information & check images from checks Accompanying documents with contribution instruction Can endorse the physical check  Software Create & submit standard bank deposit file Responsible for deposit preparation Can be web-based Match check MICR to donor record Capture donor information & pass to donor system

Essential Elements  Bank Accept Deposit Clear Checks & Deposit Funds to Your Account  Security Check storage & destruction Image & electronic data storage

Donor vs. ACH vs. RDC ACH Consumer checks only Less than $25,000 Opt out ARC & BOC Capture & send MICR information only Donor System Some scan check & capture MICR Some scan check & capture MICR & image Some create a standard bank deposit file RDC Any US dollar check drawn on US Bank No opt out No exceptions Capture & send check image & MICR information

Benefits & Risks

RDC Benefits  Reduced processing time/costs  Reduced transport costs & increased convenience  Reduced processing float  Enhanced cash flow  Faster notification of returned items  Consolidated banking relationships  Extended deposit deadlines  Simplified research process

RDC Risks  Image quality  Un-imageable items  Duplicate deposits  Check storage and destruction  Hardware/channel stability  Fraud  Data security

Determining Ministry Fit

RDC Consideration Checklist  Your goals  Amount of cash  Number of checks  Funds availability  Scanner costs  PC requirements  Contingency plan  Check storage & destruction  Process integration

Special Considerations Remittance Processing  Beyond The Check Use envelopes or coupons? Is contribution posting information available from any source other than the envelope or coupon?  What Is Remittance? Scan another document with check including payment instruction Electronically capture payment instruction Electronically post donation to donor / accounting system

Special Considerations Need for Remittance  Is information to post a contribution available in a source other than the envelope or coupon?  Net benefit of implementing a remittance solution with RDC?

Special Considerations Donor Solution or Financial Institution?  Is the donor management vendor clearing the checks & crediting your bank account? When will funds be deposited?  Can the donor management vendor create an RDC image file “cash letter” for you to deposit? Can your FI process a "cash letter" file? When will deposited funds be available?

RDC Consideration Checklist  Your goals  Amount of cash  Number of checks  Funds availability  Scanner costs  PC requirements  Contingency plan  Checks storage & destruction  Process integration  Split donations  Envelopes or coupons  Software needs  Donor system integration  Bank integration  Total solution fees (vendor & bank)

Questions?