Filed under: Software, Internet, Internet Tools, iPhone, App Store, iPod touch
Deposit checks with your iPhone
Update: This app is now available.Earlier this summer I took a paperless vacation abroad, thanks to my iPhone and Evernote. I could have done a digital boarding pass for extra efficiency, but I was happy enough with my experience. The digital boarding pass is a matrix code sent to your phone or PDA via online check-in, saving time and benefiting the environment and those without a printer (also, printers just love to run out of ink at the most inopportune time). Continental, American and Northwest offer the digital boarding pass option (here's a good run-down on how they work).
Now, the privately-held USAA Bank intends to let customers deposit checks via a pending update to the bank's iPhone app. According to the New York Times, the feature will require customers to photograph both the back and front of the check with their iPhone's camera. From there, they simply send the images to the bank via the app and presto, the check is credited to that customer's account. They can then void and destroy the paper check; it's no longer needed.
Fraud is an obvious concern, but one of the bank's executive vice presidents, Wayne Peacock, says they've got the necessary security measures in place. Specifically, the service will be limited to customers who are both eligible for credit and insured by the bank. All told, about 60% of current customers meet the threshold for acceptance, according to Mr. Peacock.
I think it's a fantastic experiment and look forward to seeing how it goes. This further confirms my conviction that the iPhone is an amazing portable computer that affects our lives in tremendous ways. Some may chose to ditch their iPhones, but mine isn't going anywhere.
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Reader Comments (Page 1 of 3)
jnorton said 12:14PM on 8-10-2009
USAA already allows you to deposit checks by scanning them in on your computer. I have found this to be somewhat hit or miss, though. It often rejects scanned deposits.
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ryan.marsh said 12:28PM on 8-10-2009
I occasionally have problems with checks not being accepted and it always boils down to not enough contrast for their OCR to read the numbers properly, or the image being improperly cropped. Sometimes I just open the check up in Photoshop if I'm having trouble and clean up the offending area. Lately I just cranked up the contrast on my scanner, it doesn't have to look pretty, just OCR'able. Doing this is no different then how many credit card companies will scan your check to them and process it as an ACH debit. If the check is legit then who cares how it clears?
jc5810 said 1:10PM on 8-10-2009
I use Deposit@Home and so far have not had any problems with it. Not one check has been rejected. I keep them until the monthly statement because it seems too good to be true. I'm amazed at this ability.
sam said 1:14PM on 8-10-2009
Draw a check in photoshop, download and use the MICR font to put the numbers at the bottom, save the check, along with a generic rear side that is signed and has your account number, deposit the check.
Works every time. :)
I've also scanned in checks and just replaced the MICR down at the bottom with the purpose of cleaning it up.
Scott McLeod said 1:40PM on 8-10-2009
Uhh, did sam just admit to committing bank fraud, or am I mis-reading that...
Drew said 2:14PM on 8-10-2009
@sam
Yeah, THAT'S not going to catch up with you.
ryan.marsh said 12:22PM on 8-10-2009
I've been using USAA since 2004 back when I was I scared little private in Airborne school. Since that time they have consistently exceeded my expectations in customer service, quality, and overall professionalism. Their products are great, their fees are low, and they answer the phone like they actually want to speak with you. I have been depositing my checks online through USAA for a year now and I'll never go back to branch banks again. This update to their iPhone app is just one more reason why they consistently rank #1 in customer satisfaction. Who else can say that about their bank?
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I'm Him said 12:32PM on 8-10-2009
I am an employee for USAA and I read this blog everyday! I love the fact that this article was written because we do feel that this will revolutionize the banking industry. Our CEO actually has an iPhone and we did a commercial about the app in one of our company meetings about 4 months ago. The software was tested on a iPhone 2g so the camera quality was ok and the acceptance rate was in the 80 percentile. Now that the iPhone 3gs has come out the picture quality is even better and it's like a 99% acceptance rate. It is a really cool feature to have, I would actually record a session and post if if I could but I am not allowed at this time. The iPhone has definitely taken our company in a direction to where we would not have gone before because no other phone at that time supported what our vision was until the iPhone came along. Like the previous comments above about the deposit@home through the scanner, we were having some difficulties because it's all based on the actual scanners image quality, but that 3gs has some pretty good image quality especially for a close up snapshot.
sam said 1:19PM on 8-10-2009
@I'M HIM: How do other smartphones not meet the requirements or jive with your vision? Why can't you do this on windows mobile, blackberry, palm, etc?
I assumed they just did the iPhone first because it's the "must have" phone.
Brian said 5:22PM on 8-10-2009
@sam: the apps for other smartphone platforms are being developed per the USAA blog. (WebOS, Android, Blackberry, and WinMo)
Now that the app has great banking functions (deposit, interbank transfers, bill pay) I'd really like to see the Insurance functions expand to include the ability to do more advanced things from the Accident checklist, such as: attach photos from my camera or albums, and then be able to electronically submit a completed accident report to USAA and be able to track claims.
I'm looking forward to the person to person transfers that is rumored to be coming to USAA in the near future. I believe that banks not having a simple system for this is one of the reasons that so many people write checks still. But it needs to be done in a way that doesn't require an exchange of account numbers between individuals. (the PayPal method is great, but not enough people use it)
Willy said 6:48AM on 8-11-2009
I also use USAA for every service they offer (from Savings Accounts to Homeowner's Insurance), and they exceed expectations every time. I didn't know there was a USAA app, but I'll get it now. Thanks.
Mike said 12:41PM on 8-10-2009
Good thing we have those copy protection measures in checks...
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Joanna D said 12:51PM on 8-10-2009
If I was a customer at this bank I would be questioning the company's decision to invest time (and my money) in doing this instead of looking for ways to really help me.
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Grant said 12:55PM on 8-10-2009
You are the most negative person on the internet.
Joanna D said 12:56PM on 8-10-2009
That aside, how many people will actually use this more than once?
2 or 3? I bet yesterday all of the bank's customers were thinking "holy cow, I wish I could scan this cheque with my iPhone because it's so difficult for me to deposit it in the other way".
Grant said 1:04PM on 8-10-2009
Here's an important point that probably needs mentioning:
"USAA only contains one branch in San Antonio Texas and mainly serves military personnel. So with most of the bank’s customers deployed all over the world, this is an excellent idea."
Doesn't seem quite as useless with that bit of information.
http://www.theiphoneblog.com/2009/08/10/deposit-checks-iphone-photos/
Joanna D said 1:08PM on 8-10-2009
I don't see how that justifies making an application for a single (relatively unpopular) phone.
ahmed said 1:34PM on 8-10-2009
How can you be so against this? You seem personally offended by it. There is always another way to do something and considering they have allowed scanned checks for some time now, it's not like too much R&D could have gone into it. It seems like just another way to do something that may or may not be convenient for people.
Phill Izenson said 2:19PM on 8-10-2009
This DOES help... USAA is WONDERFUL and because of their customer service and things like this they have earned this customer's business since 1992 and have yet to let me down at all. I completely support this kind of development. It makes my life much easier.
skyman375 said 4:02PM on 8-10-2009
Since many of USAA's customers are in the military and widely dispersed across the country (and world), and USAA has a single physical branch, this project is helping serve the customer. For years they have done an excellent mail-in deposit program, but I've found deposit@home to be fantastic. I don't deposit many checks, but I've never had a problem doing it from my Mac/HP scanner combo. I can't wait to try the iPhone app.
USAA is a relatively small bank, but because their customers are so spread out, they have absolutely phenomenal online and telephone services to make banking remotely work well.