The problem with banks, you see, is that they're one of the few remaining weak links in our ultimate goal of eliminating all human interaction. If you've got a check you need to deposit in your account, you've got to trek all the way out to your local branch; sure, granted, you can slip the check in an ATM, but your odds of encountering another living creature in the process of doing that are nonzero. Fortunately, USAA -- which counts military personnel as a significant percentage of its customer base -- is helping to close that loop with its "Deposit@Mobile" service, a component of its just-launched mobile banking app in the iPhone's
App Store. The secret, you see, lies in the iPhones magical camera which can "take" a "picture" of the check, transmit it to USAA, and boom -- your cash is instantly deposited. No muss, no fuss, and no pesky people to get between you and your hard-earned cash. Of course, that doesn't change the fact that you've got to
get the check from someone in the first place... but, you know, one thing at a time.
[Via
The New York Times]
posted Aug 10th 2009 9:17PM
yay for iPhone, but what about the rest of us Android/Win Mobile/Blackberry users out there?????????????
USAA lets you use a scanner to deposit checks right now. I do hope they make some sort of app for the major carriers to let you deposit checks with your cell phone's camera.
I got to speak with one of the teams that was developing this a few years ago (they hire local almost any time they can, and a lot from local universities) and security was their number one focus. Considering most of the top guys working there are ex military, I'm sure they know what they're doing. As an aside, their building (not campus, it really is one huge building) is like a mini pentagon (and by mini I mean it's only a mile long).
USAA has had a feature for a while now where you can scan checks from a home scanner. It worked the same way, and I doubt they would be expanding the service to the iPhone if it had been plagued by fraud.
time to buy an iphone and deposit my $1000000000 "check" to my account in the bahamas.
Android please?
Seriously, the iPhone pander is getting old. I agree that it is a great device and all but dear loard is it closed...
This would make more sense on the Android platform anyway since so far EVERY Android handset has had an autofocusing lens (a MUST for an acurate "scan") and the iPhone only has its recently-released "GS" which most do not have. Ah well...
xeno have you ever worked on a military contract? no one ever knows what they're doing or what's going on. Just because they're ex-military doesn't mean anything.
@vertigo1, I deposited a check this morning (the app update actually came out today) with the iPhone 3G and it worked fine. You don't need an autofocus from that distance.
That's pretty cool.
I would love to see other banks adopt this type of service.
it's coming... DCLXVI
So how do you prove that it was a genuine check and not a photshopicheck? You'll probably have to send the check per snail mail to somebody, right?
Shit! There you'll have to leave the house and go to a post box. With - again - a significantly non-zero chance of meeting someone.
UUUUUUUHRG!
M.
In order to use the service you have to have a credit account of some type with the bank. This ensures that they have an accurate credit report on you, and that they have a means of recovering the money from any fraudulent checks. Also USAA doesn't exactly deal with the typical clientele of most other banks. Membership is not open to the public, and nearly all members are current or past military or their children.
As the person below stated it is just an extension of their deposit@home feature which has been around for years. I am not sure how they verify the checks legitimacy but you don't have to send it in or anything. I typically file them for a while after a deposit@home in case there was a problem down the line. So far it has been a pretty awesome feature, although cheques are on the way out.
No they trust you if you have an account with them. ( it's mostly not for the public, it's Military adn friends)
There is a max deposit per daya dn if it dont clear well.. they know how to subtract and find u. :P
No paper proof? O.K. that's surprising.
Sure they only give you the money straight away because they trust you.
It's like when you deposit a check on an ATM, you just say the check is worth 100$ and they just give you 100$ on your account right away.
That's a matter of trust, too, the ATM doesn't read the check in any way.
It's a funny thing though how American just can't seem to get rid of checks altogether.
Any other country I have been the banks want you to simply transfer the money electronically from your online banking. No need for any action on the receiving end.
M.
In 1997 a law was passed that stated that photographic proof of checks just as legitimate as paper proof. USAA, who used to have to deal with the post office almost exclusively since their only branch is in San Antonio and only a small number of their members are based there, really latched onto this law. Deposit@home is perfectly legal, it just goes through an automated clearing house, just like all of your transactions on debit cards. What do you think that is? It's basically a check. So they give you the funds based on the honor system, then when it goes through the ACH, the funds are approved or not. If your funds fail at the ACH, you owe the bank all of that money. Same with deposit@mobile. I'm sure the iPhone app is just the beginning.
@Mark Schira:
You get that first $100 because federal law says they have to give it to you (unless you're depositing to a new account at a bank you don't have a prior relationship with or have a history of frequent/excessive overdrafts).
USAA will give you instant credit for the checks you deposit remotely as long as you have enough recourse available. That can be either pre-existing balances in your DDA accounts or available credit on your credit cards or lines with USAA.
As others have said, you don't have to send the paper check anywhere.
I blame the old people for the there still being paper checks in rampant use in the US.
@Micah
Well they got old people everywhere. Yet, no checks any more in most parts of Europe. Super rare (though existing) in Australia.
@ John P
O.K. I get it no paper proof.
Funny law. photo proof is an oxymoron. And viewing some "photo" someone sends you via his iPhone sure is a very loose interpretation of a proof.
But then the need of checks is pretty silly to start with, right?
Ultimatly, it all nails down to that someone tries to take the money from the payers account, if that fails or is disputed, the payment is pretty much obsolete,if it doesn't get disputed it's probably valid. Done.
If it is disputed it becomes complicated and the piece of paper called check with your signature is a pretty clear hint that you did show the intend to transfer the money. A picture from and iPhone? Heck I never singed that check, no clue how he got that photo.
What is wrong with people? Just leave mail in your mailbox and the postman takes it the next time they stop by.
Or do your post office carriers don't provide that service for you losers?
There is no need to meet anyone else. NONE.
Live alone without human contact.
Wal-Mart does this the reverse of this transaction millions of times a day when customers pay by check, so it's nothing new or exotic. The cashier scans the check and hands it back to the customer. The check image is electronically forwarded to the bank and the funds are withdrawn from the account instantly. The new bank laws allow this kind of image transaction and AFAIK there isn't even a signature verification anymore.
No, you don't have to mail it to anyone. We've been doing this for years and I can't think of banking any other way.
They have had deposit@home for years. Same concept only with a computer and scanner. USAA is really a great organization I have used them for 8 years now, and have never had a single problem and their customer service is second to none.
USAA really takes care of their customers. No ATM fees ever, free checks, free checking, money-back on your debit card, 1.25% cash-back on your credit card, no annual fees. Pretty snazzy.
I have been using deposit@home and now im gonna download this app for even more convenience. I wonder what the limit is. deposit@home is limited to $5000 a day total.
Wow, talk about adding such an abusable feature.
I actually use USAA's online banking now and can deposit checks by scanning them and uploading the image to their website. After the check is received I am instructed to write "VOID" on it and/or destroy it. There's no need to send anything through snail mail.
This is awesome
HA I just updated and thought I was the only one using this.
ummm.. isn't it time that US started using NetBanking services like the rest of the world. I haven't used checks in ages in Australia.... Everyone just transfers money online!!
I havent used checks for many years as well, but here in the States they are still accepted in many places, although the number of businesses that accept them are dwindling. USAA is my bank of choice, they are ranked #1 in the USA to work for and are #1 in customer service. The main reason they utilize this kind of service is because they only have 2 walk in branches, one in Phoenix and one in San Antonio and most members are all over the world so they need some alternate method of getting checks into their system. We live in neither Arizona or Texas and whenever someone writes us a check or when my job pays me, I have to deposit it this way. While I could open an account with a local bank, this is so much more convenient.
That doesn't sound very secure :/
You might think that....but you'd be incredibly wrong to think that.
How is it secure in anyway?
I donno if this is helpful or not, but the USAA web page interfaces directly with your scanner driver via a java app. You don't scan it and upload a jpg or anything, so theres no way to shop the image before they receive it. I'm not saying its unbreakable, but the average joe prob couldn't get around that.
This and there deposit@home service really only cut out the middle man.
Check 21 allows banks to clear checks via images instead of physical transportation. When you deposit a check, the bank scans it and clears it via an image... so why pay a teller to do this when the customer (1) can do it on their own and (2) prefers to do it on their own?
Cool, checked it out with the update today.
Seriously, this has flaws all over it that, after you have "deposited" the "check", you still have an endorsed check in your hands.
I see lots of cashing/redepositing attempts, both honest and dishonest.
Negative. It's the same as the Deposit@Home system (on your pc w/ scanner). You have to write on the back of the check "For deposit only to USAA FSB Acct #__________"
This covers what your talking about.
I can't believe the number of people who make this ignorant "not secure/abuse" quip, especially considering (which they probably didn't) USAA's clientele.
History lesson: USAA was founded by professional U.S. Army officers. When they first started as an auto insurance company, they didn't even verify members' claims ... they just trusted fellow officers (considering they trust them with their lives on the front lines) to tell the truth about the damages to their vehicles.
Sure, the company has since opened their services up to more than just the officer corps of the Army/Navy/Air Force/Marine Corps/Coast Guard, but falsifying a check remains a federal offense -- how many service men and women, officer or not, do you really think are that renegade?
Deposit@Home has been around for years, enabling it one the iPhone is just one more example of good ole private industry innovation.
Yeah, I bet that there will be absolutely no attempts at fraud with with this app! ; )
It would be the attempted fraudsters loss... There is only one USAA, and it's worth keeping. By far the best bank in the country if you ask me.
Oh, and as I mentioned to someone else, you have to write "For deposit only to USAA FSB Account #_________" and sign the back of the check for it to work. So no double deposits at another institution.
I'm not sure why I'm learning about this from Engadget instead of from USAA, but thanks Engadget!
You should pay attention to some of the news links USAA posts. They did a webcast about it several months ago, and it's been in various news links on the their site ever since.
This has nothing to do with Apple. It is programmed by the developers at USAA.
Just so we're clear. USAA is only open to military (current, retired, honorably discharged) and direct family (spouse, children). No friends, no cousins.
If you were to try and cash a check twice, one of two things would happen. 1.) Unhappy bank that issued check would come looking for you 2.) Unhappy person that you just double tapped comes looking for you...via their bank; hopefully not w/Bubba.
Don't hate because you and your bank can't do this as well.
Actually the Bank, Financial Services, and Life Insurance is open the anyone. It is the Auto and property insurance that is closed to eligibility
The public can now have deposit accounts with USAA. They can't use the deposit@home or deposit@mobile services, but they can have bank accounts there now.
@Brian S: link please.
Membership is open to:
* Active-duty officers and enlisted personnel.
* Children whose eligible parents have or had a USAA auto or property insurance product.1
* National Guard and Selected Reserve officers and enlisted personnel.
* Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS).
* Former military personnel:
o Retired officers and enlisted personnel.
o Former officers and enlisted personnel who separated from the military on or after Jan. 1, 1996.
* Former USAA members who had USAA auto or property insurance.
I don't have a link. I work there, and I can tell you with no doubt that I am correct. If you don't believe me feel free to call the bank and ask them yourself. #8722 from a cell phone will get you straight to them.
yes but thanks to the iphone (by Apple) it is possible to do it on the go