What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
In the previous articles, we have already read about how banks are the main pillars of the financial system. It is obvious that since banks are so important to the economy as a whole, the government must create a system to protect these banks from collapsing in case a negative economic event occurs. Governments all […]
Inventory is a very important part of the retail business. This is because the stock which retail stores hold on their books is their most important asset. The quality of this asset allows them to generate higher profits as compared to their peers. Hence, the valuation of inventory which is held by the retailer is […]
Individual investors are well aware of the existence of pension funds. Retail investors who earn their income in the form of a salary are likely to have invested in these funds. Other retail investors may also have invested in these funds. Almost everyone has heard about pension funds in the news. However, very few people […]
Meaning of Capital Structure Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions- Type of securities to be issued are equity shares, preference shares and long term borrowings (Debentures). Relative ratio of securities can be determined by process […]
The British banking regulator FSA has prosecuted Barclays for rigging the interest rates in the market. The regulator termed it as being equivalent to stealing money from people who invest in derivatives and other stock market instruments that are sensitive to LIBOR. Barclays, one of the largest banks in the United Kingdom had to pay […]
The usage of remote deposit capture has been increasing rapidly in the recent past. This is because the technology is convenient and also because check processing became very difficult during the lockdowns which were induced by the coronavirus pandemic. As a result, corporations were forced to deploy remote deposit capture machines in order to continue to run their processes.
In fact, the coronavirus pandemic has ensured that banks make the remote deposit capture feature available for retail customers as well. In many parts of the developing world, retail customers can also deposit their checks and encash them by simply taking a picture of the same.
In the previous article, we have studied about the working of the process as well as its benefits. However, it would be wrong to say that the remote deposit capture process is without any risks. There are some significant risks which are associated with this process. In this article, we will have a closer look at some of the most obvious risks which are associated with the remote deposit capture process.
However, banks are very diligent about fraud. Hence, they have systems in place to detect such fraudulent redeposits. Banks lay down significant penalties for such redeposits. This is done to deter fraudulent attempts. Hence, the administrative error of a few clerks can cost the company a lot of money in terms of charges and fees.
There are many fraudulent people who are aware of advanced digital techniques with which they can create counterfeit checks which appear just like an original on a scanned copy. This may be done by the staff of the corporate customer while trying to embezzle money.
Corporate customers have to be sure whether their insurance covers the liability which may arise from frauds related to remote deposit capture. Sometimes, insurance companies may not cover the loss and in such cases, companies may have to purchase additional insurance. Commercial banks themselves are able to help customers meet their insurance needs. However, it is important for the customers to be aware of such risks.
In modern times, most commercial banks have been able to mitigate the various risks which arise due to the remote deposit capture technology.
Hence, remote deposit capture is generally viewed as being a safe mechanism to expedite the cash flow of a company. This is the reason that corporations all over the world are not paying attention to the risks but instead to the benefits of remote deposit capture. This is evident from the high rate at which this technological advancement is being adopted by various corporations across the globe.
Your email address will not be published. Required fields are marked *