Remote Deposit Capture 2.0: Next Generation Remote Deposit Capture


This e-book will walk you through the options for processing checks on the parameters of processing cost, check float reduction and resource requirement.

Contents

Chapter 01

Executive Summary

Chapter 02

Key Challenges in Check Processing

Chapter 03

Options Available for Check Payment Processing

Chapter 04

Remote Deposit Capture 2.0: Next Generation Remote Deposit Capture

Chapter 05

RDC 2.0 vs. RDC vs. Lockbox vs. Traditional Processing

Chapter 06

6. Case Study: The Sysco Story

Chapter 07

About HighRadius
Chapter 04

Remote Deposit Capture 2.0: Next Generation Remote Deposit Capture


To address the challenge of traditional Remote Deposit Capture, companies have started using traditional RDC in conjunction with Artificial Intelligence enabled cash application, in what has been termed as RDC 2.0. RDC 2.0 integrate remote check deposit with straight-through cash application.

RDC Integrated with Cash Application

RDC Integrated with Cash Application Flowchart   Step 1. Scanning Unlike traditional RDC scanners, RDC 2.0 is able to scan checks and remittances together in one batch. Each batch is capable of scanning up to 100 checks at one go. Once the checks get scanned, the solution captures data with high accuracy and precision with its inbuilt Magnetic strip based MICR capture and OCR based data capture. Step 2. Transmission of the enriched file With the scanned data, the solution creates an enriched electronic file consisting of the payment details in a bank-compatible ICL (Image Cash Letter) format for transmission to banks. The solution also creates a processed electronic index file of the payments received for internal cash application. This omits the need to key-in payment data by the analysts into a spreadsheet. Step 3. Real-time cash application

  1. †The received electronic index file of the payments gets auto-matched with the scanned remittance information
  2. The open A/R invoice details get pulled from the supplier?s ERP system
  3. The payment details are individually linked with the line-items in the open A/R
  4. Cash gets auto-posted in the ERP

All of this happens entirely straight-through without the need for any manual intervention. Scanning of Checks and Remittances with RDC  

Benefits of RDC 2.0

  1. Straight-through process: The solution is capable of capturing checks payment and remittance accurately and handling exceptions. The solution achieves a posting hit rate of more than 95%.
  2. Cost-Effectiveness: RDC 2.0 is feasible for SMBs because of its high cost-savings. The areas where RDC cut costs are:
    • An RDC scanner is a one-time investment and very cheap to procure. It can also be availed at monthly subscriptions instead of up-front payment.
    • Expensive lockbox services. This could generate up to five-digit dollar savings.
    • Costs required for resources just for keying-in data
    • Transportation and manual handling costs
  3. Compatibility: Since RDC 2.0 solutions rely on the integration of regular RDC scanners with Artificial Intelligence-enabled cash application solutions, they are inherently compatible with most popular RDC scanners available on the market, including the one on your desk. RDC Compatible Scanners (Benefits of RDC 2.0)
  4. Bank and ERP Agnostic: The solution is independent of the type of Bank or ERP the supplier uses. This enables business scaling in terms of operations and geographies.
  5. Real-time Cash Application: The moment the checks hit the company, they get scanned, processed and posted into the ERP

RDC 2.0 – Speed, Cost and Resource Requirement Analysis

Speed

Everything happens in real-time. As soon as the checks are scanned, they are deposited in the bank and processed for cash application and posting.

Cost

It eliminates the costs required for lockbox services, or for in-house data keying-in and manual reconciliation of payments and remittances, resulting in big savings.

Resource Requirement

It is a straight-through process, providing end-to-end automation, thereby enabling your team to focus on high-impact work across credit and collections.

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HighRadius Cash Application Software enables the end-to-end automation of the cash application process that covers major benefits such as AI-enabled data capture for remittances, auto-linking of payments with open invoices, cost-cutting on lockbox fees and easy compatibility with any system due to its ERP-agnostic Saas infrastructure. Apart from the major benefits that it has, there are some key features which can not be missed out, some of them are Email Remittance capture, Discounts and Deductions Handling, Check Remittance Capture, Web Remittance Capture, Invoice Matching, and RDC & Mobile Payments.