We are getting into Merchant Capture. Although we do not normally place exception holds, that topic does not appear covered anywhere in the "Remore Capture for Dummies" book.

If you are doing Remore Capture, what might be an effective way of monitoring for exception holds? Tellers do not see the check, and operations "may" (if they have time) look at the documents processed on-line.

Thanks

If I had a merchant that would be subject to exception holds, I don't think I would allow them to do remote deposit.

The last I read on this topic, deposits made via remote capture were not subject to Regulation CC (because the deposits aren't made at a bank branch or an ATM). That leaves funds availability issues as a contract item.

Very interesting, John. I think I read that somewhere, too, but do not recall where. Can you remember that source?

From my understanding, Regulation CC does not apply to Remote Capture because Remote Capture does not meet the definitions in the regulation of a branch or ATM. Though I have not delved into Check 21 too much.

I believe that it was discussed previously here at BOL (perhaps last fall), but I can not seem to remember the details well enough to locate it.

Here's the OCC Letter. In the OCC's opinion, remote deposit terminals at a customer's location are not branches as defined in Reg CC: http://www.occ.gov/interp/aug05/int1036.pdf

Thanks, PatrickG. That's a good letter, but is it defining a "branch" for Reg CC purposes or otherwise? Is this discussing a "branch" for licensing/location purposes of a National Bank?

Have a look at this old thread. As you'll see, about half way down info about a white paper shows up. And that's when I changed my mind about remote capture.

The Fed has had an opportunity to issue an interpretation or amendment to Reg. CC to clarify the issue. The fact that we have seen nothing suggests that they are waiting to see what "shakes out" in the industry.

I do recommend that your contract provide availability that is no less customer-favorable than what the customer would receive if you were dealing in paper checks, deposited conventionally. In that way, if the Fed ultimately opines that Reg CC applies, you won't need to change things.