1. Pitney Bowes’ RDC Initiative – when will banks engage?
Jul 24th, 2009 | Posted by Bob Meara
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Pitney Bowes and Jack Henry & Associates (JHA) have teamed up to offer remote deposit
capture (RDC) to small businesses. JHA’s ProfitStars division is providing the solution. The
relationship was announced in May. E-mail marketing has begun among Pitney Bowes installed
base of postal meter customers. The bank-neutral solution branded Click Deposit provides
bundled scanner fulfillment support and processing for a monthly fee starting at $39.95. The
lowest cost option supports up to 150 checks per month. Businesses having higher check
volumes would be invited to join at higher monthly rates – as high as $149.95 with several
options in between. All plans require a 3-year commitment which includes leasing the Panini
MyVisionX-30 scanner. The solution optionally provides an AR extract suitable for QuickBooks
users.
Click Deposit customers enter a merchant processing services agreement with JHA which is, of
course, riddled with mention of Check-21 and ACH terms that perhaps one in ten thousand
small businesses would understand. JHA underwrites each merchant and assumes the
associated deposit risk. Funds availability is not specified in the agreement, only that funds
may be delayed at JHA’s discretion. Merchants are liable for fraud, loss due to duplicate
presentment, NSF and proper safeguarding of original items once scanned per the agreement.
All reasonable terms in our opinion. In part, the agreement is lengthy because deposits are
processed using both Check-21 and ACH rails. All deposits are aggregated at one or more
presentment banks that clear items using image exchange. Individual DDAs at the multiple
banks of first deposit are then credited using the ACH.
Celent finds Click Deposit a solid service and a logical extension to Pitney Bowes existing
solutions on terms that are currently competitive to what most banks are providing. The big
difference between Click Deposit and individual bank solutions (beyond the incidental use of
the ACH) is that Pitney Bowes is actually selling the product. It will, no doubt, enjoy this
advantage for some time as most banks remain slow to introduce remote deposit capture to
the small business segment. Longer-term, Celent expects competitive offers at lower monthly
pricing utilizing less capable (and expensive) scanners aimed at small businesses with low
check volumes. As the market matures, low total solution cost and access to efficient
distribution channels will be of growing importance.
In the absolute, Celent finds this a significant initiative. Pitney Bowes enjoys a large installed
base and support infrastructure well-suited for Click Deposit. Banks that have not yet
awakened from their slumber need to realize that the market is not standing still. Despite the
troubling economy, a number of new, bank-neutral solutions are close aboard.