This looks great! What software vender are they using?

That is exactly my question too Steve. Who are they using to do this. It could be the same vendor that was providing the USAA QuickPost UPS Store deposit service. If so, then I believe we could see similar roll-outs from CUs that had used QuickPost (eg. Navy FCU). Anyone have insight into this?

How are they doing the backend? Are they sending via check processing or ACH processing?

What an innovation by USAA.

Thanks for sharing.

Lisa, this is a great question. Since part of the process is to destroy the check I'd guess it is check processing (not ACH) via check 21 capabilities?? What is strange to me (and I'm not an expert on this by any means) is that I seem to recall that hardware scanning devices had to be check 21 certified...clearly my cheap best buy scanner isn't certified so not sure what this means. Could USAA be testing the boundaries with this capability? Perhaps they are just using ACH and keeping the scan as a record? Lots of questions here...or, am I missing something?

Scott ... I too would be interested in learning more on how USAA is processing the images ... IRD, ARC, ACH, other? ... What was your experience in using the software and scanning the checks. Is there a verification page on aspects of the check (routing number, check number, amount, etc.) before submitting?

Thanks for sharing. Truly innovative and member service oriented!

I am also wondering how the transaction comes through - ACH - converted Check? What happens when the deposit is returned?

Here is the USAA official press release with video of the benefit to members, testimonials, and full process. Worth a watch.

I'm trying to track down the vendor who is providing this...I am assuming this wasn't built in-house but might be wrong. Will let everyone know.

I'd probably throw this into the "interesting, just because we can" but do members really need another way to deposit a check? How does this significantly benefit USAA customers beyond existing postal depositing?

Dave: To me, this is a significant web-based competitive service offering for USAA -- especially for their very remote & global membership. However, I believe this extends beyond remote members and instead also captures interest from members who are simply busy and recognize the added benefit of immediate posting to their account. Other relatively new homebanking "deposit and mail" solutions are similar (sort-of) and a great service to members...but, I think in the long-run as member awareness improves about the convenience, speed (full transaction done, now), and zero cost (not even a stamp) of a full 100% at home process we will see this become the preference for home banking members who have even just a couple of checks to deposit each month -- so, most of us.

Is this too bold a vision? Or, do most consumers not really care so long at the postal system works? An interesting question.

Interesting to see some of the commentary (mostly by consumers) on the web...many asking 'How do I join USAA?':
http://blog.wesabe.com/index.php/2006/12/07/depositing-checks-with-a-scanner/
http://www.gottadeal.com/forums/showthread.php?t=51773

As a USAA member the association has invested in a total E Document system for it communication with members. The Bank does not have branch locations their chosen method of interaction with the member is via mail, phone, or internet. Their preference is electronic and this was a setp up from Quick Post. I would suspect USAA developed this in house and passing the items as ACH items.

Update: The check I deposited (see screen shots in post) appears as a normal cleared check image within the check writer's home banking platform.

Chris: Wouldn't this seem to indicate the process used is not ACH but instead a check-21 process?

Scott ... I think you're right, that they most likely are not using ACH, but image-enabling the proof for acceptance then producing an IRD for the paying bank (I don't know for sure). I'd also suspect that they would be using a third party ... just for the ability to mitigate risk to some extent. I'd still like to hear what someone at USAA has to offer on the subject. Thank you!

I'm based in the UK and can't believe this is possible. Fantastic!! I worked in Check Truncation for NCR years back at the ATM end point...but this blows me away. I can't see the UK accepting this for many years.... we are too slow. I take my hat off!

alex

USAA is using the same check 21 process that is being used for businesses. I use the service and after I have written a check, it comes back as an IRD (even though it is a consumer item). One of the reasons for using check 21 (IRDs) is because business checks cannot be ACH's only consumer items. I am one of the many who is scanning business checks to post to my account. It's a great product and I do find it incredibly interesting as I do work int he ACH industry providing a myriad of services to Financial Institutions and merchants (businesses)

I think this option is near-impossible to consider. It might work for exceptional members only, but this process still creates an increased potential for fraud. Destroying the check without allowing a financial institution the ability to prove the legitimacy will become difficult for returns. (Members will be charged for returned checks, they destroyed the check and have no way to prove the check existed, causing further problems for them and possibly goods or services they originally received payment for.) MICR, code lines, signatures, and all of the security features on a check should not be substituted by an individual sitting at home scanning a ‘presumed’ check for deposit. Remote capture is here and it is working for businesses at their offices, members at the ATM, and for branches. However, there are contracts, laws, and rules that are put in place for these transactions, as well as, proper scanning equipment. Truncation of physical checks has responsibilities and we have to maintain the integrity of those checks for presentment.

A great point about fraud Jack. That is certainly a factor to consider in all this. Presumably to minimize this risk USAA has limited access to this service based on relationship...in this case currently only to those customers with a loan at USAA. I believe fraud experienced by other organizations (like PSECU with their UPost) with similar trust-based check deposit services is very low.

So, I guess it depends how you look at risk at your institution. Much of what we do in this industry is based on risk vs benefit. Certainly the benefit to the member with this is big and potentially the branch and back-office benefit is also huge for the institution. Does the actual fraud experienced over time outweigh the benefits? I'd assume USAA will not offer this long if they experience these problems. However, I have a feeling we will see this model emulated at many other institutions in the next year. Time will prove me wrong I guess.