Remote Electronic Deposit

ACH☼RED is an Internet-based, privately labeled, front-end solution for financial institutions and their commercial customers.

Merchants scan, truncate, and submit checks electronically through a secure, 128-bit RS4 encrypted Internet connection. Financial institutions process the standardized X9.37 image files electronically or on paper as substitute checks, making implementation of ACH☼RED independent of an institution’s Check 21 readiness on the backend.

Financial Institution’s commercial clients want to make deposits quickly and conveniently. Having to drive to a branch everyday is time consuming, and that time can be better spent on more important activities. With ACH☼RED, commercial clients scan, submit, and deposit all of their customer’s checks electronically.

ACH☼RED Remote Electronic Deposit Processing allows merchants to scan images and MICR coding of checks to be deposited, enter the amounts, balance the deposits, and securely transmit the files to their bank. It also provides the merchant a local database of checks deposited.

Clearly there are numerous advantages to ACH☼RED for Financial Institutions:

• Nationwide Commercial Customer Market.
• Strengthens Existing Depository Relationships; Client Retention.
• Brings in new Commercial Deposits
• Increases Competitive Commercial Offerings
• Defensive measure against Competitive Encroachment
• Requires No Backend Check-21 Capabilities

There are six steps in the ACH☼RED daily process:

1. The merchant scans the deposit tickets and checks and enters the amounts.
2. The merchant transmits the check files to the bank via a secure file transfer link.
3. The bank imports the incoming files and stores them on the remote deposit database.
4. The bank creates X9.37 image presentment files from the merchant check files.
5. If the bank is not doing image presentment, IRD’s and cash letter bundle listings may be printed for the checks.
6. The bank creates COF files to update the main bank image archive, and proof transfer files are reformatted to the host system input format.

At the bank, the system provides for accumulating the transmissions from merchants, indexing them into a database, creating X9.37 image presentment files from them, and creating proof input files to update the bank host system and COF files to update the bank image database. The X9.37 files can be sent to the image clearing facility, or used to create IRD’s and cash letter bundle listings if the checks are to be cleared as physical documents.