Transaction settlement processes have continued to advance since the Check 21 legislation was first implemented. Digital deposit capture has expanded from typical branch procedures to include ATM, mobile and teller machine capture. The branch methods eliminated the float time between deposit and actual settlement. They also reduced costs by eliminating the need to use courier delivery to send the paper document to regional locations by allowing digital reproduction to be sent between servers. However, branch methods did not eliminate a significant problem experienced within the industry.

An immense number of errors can occur in the course of batch processing, as the procedure does not happen immediately. Incorrectly scanned checks or other complications unknown to the teller created the need for adjustments on the second day that increased the workload of financial institutions. Cashier methods eliminate the need for “second day” adjustments because every transaction is verified at the time of deposit. The included recognition technology helps with the procedure by ensuring that all necessary elements are on the paper document. No additional steps are required as long as the check has been read correctly.

Bank check scanner: What technological advances are offered?

This imaging method offers other benefits in addition to reducing keyboard input errors. Financial institutions can implement a bank check scanner to streamline administrative procedures and provide better security for transactions. Front-end or ATM imaging offers these additional benefits to the implementing bank:

• Less human error
• Immediate availability of images
• Image quality analysis
• Data verification
• Routing number match
• Improved fraud detection
• Real time operation
• Reduced handling time
• Reduced operating expenses

Keyed entries and batch procedures at the end of the day create a wider margin for errors that can be eliminated by using a bank check scanner as part of initial deposit acceptance. Images are accessible immediately after the transaction has been scanned and can be submitted for settlement in less than a period of time. Image quality analysis, MICR verification, and routing number matching avoid common mistakes seen during back-office batching. Each transaction is compared to the national database at the time of acceptance and files can be created as often as necessary throughout the day. Eliminating batch processing at the end of the day makes it possible for cashiers to remove their drawer in less time. Financial institutions don’t have to worry about dedicating staff members to handle the next day’s adjustments.

Today’s scanning devices are extremely reliable, offer a high rate of accuracy, and are designed to meet the needs of cash pickup processing. Adaptive thresholds allow the highest quality image to be transferred to the application for fewer manual corrections. Additional documents such as money orders or traveler’s checks can be scanned. The algorithms are used to perform the magnetic MICR reading, which is complemented by optical character recognition for verification at the time of capture. High-capacity power, high-quality cameras, diagnostics, autotuning features, and compatibility with major software platforms are developments that are being seen in newer equipment. Banks that are considering digital capture for the first time, or experiencing huge errors with their branch methods, have teller capture as a reliable alternative option to improve the image of paper transactions.