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Remote deposit capture

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Remote deposit capture (RDC) is a technology that improves efficiency in the processing of payments made by check. It was made possible, in the U.S., by the Check 21 Act of 2004. That legislation defined a new negotiable instrument called a “substitute check,” a digitally scanned record of a paper check, which becomes the legal equivalent of that physical check. The technique allows bank customers to “deposit” checks electronically at remote locations, usually in the customers’ offices, for much faster credit to the payee's account. [1]

Even without the time to transfer paper checks, the substitute check clears more quickly and provides better cash flow to the payee. The technology, however, does create new potential for fraud, and also a new class of negotiable instrument with which Bank Secrecy Act compliance is required.


  1. Remote Deposit Capture: A Primer, Federal Deposit Insurance Corporation