Money Money Money

Remote deposit capture is a technology that was first introduced about 10 years ago, but only in the last few years has become much more available to dental offices. RDC is a service which allows users to scan checks and transmit the scanned images to a bank for posting and clearing. Requirements for users are a PC, an Internet connection, and a check scanner provided by your bank. Practically all banks now offer this service.

The bank’s software is downloaded into the office computer. Training is quick and easy. Basically, if you can read, you can do this! The checks that you receive at the practice are scanned and a digital deposit is created. The digital deposit is then transmitted over an encrypted Internet connection to your bank. The bank accepts the deposit, posts the deposit to your account, with next day availability of the funds. Four advantages come to mind.

1. Efficiency–it takes less than 5 seconds to scan a check, and when you have finished scanning all of the checks, a virtual deposit slip has been instantly created. Without this technology, someone has to manually record the dollar amount of each check on a deposit slip. This process typically includes counting the number of checks and adding the value of the checks–at least twice–to be sure that the deposit is accurate and balanced.

2. Convenience–the doctor or a staff member is no longer required to physically leave the office and go to the bank branch to make the deposit.

3. Reliability– RDC stores up to 60 days worth of check images. This will usually eliminate having to pay your bank “research fees” for problems associated with the deposit of any check.

4. Functionality – The RDC software interacts seamlessly with all of the major accounting software programs.

In my opinion, however, one of the biggest advantages of this technology is that it gives a dentist multiple options for finding better or more competitive banking relationships. Without this technology, you are pretty much limited to using a bank with a branch office in your neighborhood so that you don’t have to travel very far in order to make a deposit. Now you can potentially use any bank.

Let’s say that you want to take advantage of current low interest rates and refinance an existing loan. Maybe you need a new loan for expansion of your facility, or for the purchase of major technology, or to acquire another dental practice. XYZ Bank–located two states away–may have a fantastic low interest rate and generous amortization terms. That bank, however, will only offer that great rate to you if you give them your depository relationship. That’s how banks make money. With remote deposit capture, you are now able to expand your options and most likely save significant amounts of money. Go for it!