The Federal Reserve Bank's announcement of its intent to collapse all paper check processing into the Cleveland office by fourth quarter 2009 has left many credit unions anticipating expensive courier charges and delays in the delivery of deposit returns. Southwest Corporate Federal Credit Union is touting its image deposit return service, which it expects to roll out early next quarter, as a cost-effective and faster alternative.
The service returns deposits electronically from the paying financial institution to Southwest, rather than delivered by courier to a credit union's central office. Using credit union-specific criteria, the service can automate the redeposit of not sufficient funds items, report additional maker and payee information, and provide content-rich deposit detail reports through its online account management system.
"The reports will display images of returned items, group out large-dollar notifications and provide a downloadable file for printing returned item substitute checks that credit unions can give to members," said Bill Brennan, director of site operations for the Dallas-based institution. "Final settlement will occur between Southwest Corporate and the credit union, simplifying and removing the Federal Reserve Bank from the reconcilement process."
Implementation only requires signing forms and purchasing a low-cost MICR printer, he said, and can be up and running within two weeks.
Image deposit return joins branch capture, teller capture, business capture and member capture to complete Southwest's suite of remote deposit services, which it first began offering in 2002.
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