Check 21 and Desktop Deposit Explained:

How does Check 21 work with CheckWriter?
What is a desktop deposit and can I use it?
Can I use Check 21 to expedite deposits.
Will Check21 automatically deposit my check?

Overview:
CheckWriter software is stand alone, and creates a physical draft of the customer's check for deposit.  The Check Clearing for the 21st Century Act, known as Check 21 enables banks and merchants to move check payments more quickly, and convert them into electronic items, as well as create substitute checks.

A check draft created by the merchant is treated just like a check you receive through the mail or over the counter and all of the Check 21 regulations apply.  This facilitates the use of desktop scanners to use desktop deposit, and also allows for electronic check conversion, and substitute checks to be created.

How to:
Check 21 -
This is the actual law that allows for check drafts to be converted for desktop deposit, converted to substitute checks, or converted into electronic debits using electronic check conversion.

Desktop Deposit -
If you have desktop deposit now, you can use drafts you print with CheckWriter with your current system if your bank allows for optical scanning.

Optical desktop deposit scanners take a scan of the front and back of the check or draft, then convert that into an image which is sent to the bank for deposit.  The merchant then files securely or destroys the original check or draft after it is scanned for desktop deposit.

Some banks require the merchant to use an Optical and Magnetic scanner for desktop deposit or for electronic check conversion.  If this is the case, the merchant may need to use a laser printer and MICR TONER in order to comply with the scanner's requirements.  Get an MICR Printer and Toner to comply with this bank regulation.

Other banks have no requirements and allow you to use any scanner at all, including a flatbed or hand held scanner you may use for photos.  Chase Bank has introduced an iPhone app that allows you to photograph the front and back of a CheckWriter draft and deposit it right into your account from the phone with no MICR toner or printer required.

Electronic Check Conversion -
Electronic check conversion is a retail application, and is similar to desktop deposit.  Electronic check conversion does not apply to CheckWriter software and taking checks by phone because it is designed for stores where people present checks, and not for businesses that are printing drafts.

With electronic check conversion, a retail store takes a check from a customer and runs it through an MICR scanner. The information like Routing Number and Account Number are verified and stored into an ACH file and transmitted electronically to the bank.  The customer receives back their check with a notice that it was converted to a debit.

For CheckWriter customers, the proper use of the Check 21 regulations would be to use desktop deposit or image conversion into a substitute check.

Substitute Check -
Substitute checks are copies of the original check that replace the original completely.  This system allows banks to convert the check or CheckWriter draft that the merchant prints into an image, then back to a paper item that becomes the substitute check.

Direct ATM Deposit -
Bank of America and other banks are starting to offer direct ATM deposits of checks and drafts. These new ATMs have either an optical or MICR scanner or both that are built in, and checks are accepted with no envelope and often credit instantly to the bank account.

Some ATMs will accept, scan and convert CheckWriter drafts without MICR toner, and some still require it.  If you need an MICR Printer and Toner Cartridge, you can order it from CheckWriter here.  It is best to try depositing without MICR toner first, thereby eliminating the expense should your ATM not require it.

What does this mean for CheckWriter users?:
CheckWriter™ drafts are as versatile as a regular check. Deposit them in the ATM, night drop, with your teller or use newer systems like desktop deposit, an iPhone app or direct scan ATM.  Because of the Check 21 regulations, CheckWriter drafts are even more widely accepted and are easier to deposit and than ever.

Conclusion:
CheckWriter™ software will allow you create items that comply and work with all Check 21 regulations including Desktop Deposit. Because CheckWriter complies with all current regulations, and standards, any business can use the software to take checks by phone, checks by fax or checks online without the concerns of formatting, or learning complex rules or guidelines. Check 21 simply expands the possibilities and facilitates faster check and draft clearing.

Checks by phone:
Learn how to take checks by phone.

Not convinced? Click Here to see why you should choose CheckWriter™.