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#1142871 - 03/10/09 05:05 PM Remote Deposit - Personal Accounts
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
We have several remote deposit customers (businesses) who would like to also have the ability to deposit into their personal accounts using remote deposit. In most cases, the individuals are the business owners, but in a few cases, they would like the office manager (not a signer on the business account) to be able to conduct his/her personal business using remote deposit. Is there any reason we shouldn't allow this? Do others allow it? If we do allow it, what special precautions (if any) should we take?
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eBanking / Technology
#1143042 - 03/10/09 07:40 PM Re: Remote Deposit - Personal Accounts Deena
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
The need to bind the account owners to you contractually is one major challenge. How are you going make sure you have a contract in place for the office manager? For the business owner (as an individual), etc. If you don't prohibit the business from allowing hitch-hikers on the service, you could be left holding the bag for transactions you didn't bargain for. Third-party checks deposited to an individual's account. Kiting. Fraudulent checks (from counterfeit check scams).

Remember that your agreement with the business should be based in part on the business's record with you, your expectations as to volume and check type, creditworthiness of the business, the deposit relationship, etc. But the office manager doesn't (or shouldn't) benefit from the business's credit standing or balances, etc. He or she should qualify on his/her own merits.

When you allow third parties to hitch-hike on the agreement, you lose control.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#1153925 - 03/30/09 06:20 PM Re: Remote Deposit - Personal Accounts John Burnett
Susan Orr Offline
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Joined: Aug 2008
Posts: 13
Illinois
I have seen institutions allowing the owner of the business to deposit into their personal account via RDC but they have a separate agreement and the personal account number is set up separately. So they can use the RDC product, but can't deposit into the business account, it must be into their personal account. I've not seen anyone allow any other employee to use RDC for their personal accounts.

Totally agree with John, asking for trouble.
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Susan Orr, CISA CRP CISM
susan@susanorrconsulting.com
630.499.0276

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