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Buchberger doesn't think RDC will eliminate ACH transactions, even though
an increasing number of banks receive images electronically. "In the early days
of Check 21, few banks could receive checks electronically and needed an
IRD," he noted. "Now, banks are updating their technology to send images
end-to-end."
Paperless image exchange drives down costs, and the most comprehensive
RDC systems today offer both image exchange and ACH capability, he added.
"RDC is quite a bit easier to implement than branch capture," Pratt said.
"Early thick line [PC-based] versions made implementation more difficult.
Now everything is thin client, and
we found consistently through the
industry that image quality has not
emerged as a significant issue.
"The other concern was fraud.
Interestingly enough, to the best
of my knowledge, not a single
case of fraud has been associated
with RDC." NACHA – The Electronic
Payments Association's BOC entry
code allows retailers to take checks
and either scan and deposit them
electronically as an image or read
the MICR line and truncate it into an
ACH transaction.
And new RDC products are equipped
with higher speed cameras for image
capture and can read the MICR line
both mechanically and optically to
capture more accurate images.
Industry experts envision RDC eventually
becoming a stand-alone payment
application. "What we've done
with our Check360 RDC solution
is put a lot of front-end risk management
features into our product
like duplicate detection, which prevents
checks being run through more
than once or at other locations,"
Buchanan said.
"Where we are headed is to create one
comprehensive payment solution for
merchants instead of multiple solutions,"
he added.
"We strive for consistency across all
payment mechanisms, and I think
that's where the industry is headed
over the next three to five years."
Ficarra believes the RDC opportunity
is going to produce the next crop of
ISO and MLS millionaires.
"They can become the gateway for
RDC and punch a hole into the fabric
of the small and mid-sized business
owners, provide the appropriate
value added services, and create new
revenue streams in a niche market
with massive profit potential – and
a dearth of sales representatives,"
he said.
"So, where do I sign up?"