Businesses can deposit checks over the Web with Fiserv program

Fiserv, a financial IT firm, showed off the latest module of its BankLink system on Tuesday at the National Automated Clearing House Association's Payment 2005 conference.

The ILink Remote Deposit system allows Fiserv's clients to deposit checks electronically, placing them in a scanner and sending them directly to the bank. The system is designed as a response to the Check 21 legislation passed in October 2004, which made it legal for banks to convert paper checks to digital form.

Jim Gillespie, Fiserv BankLink's vice president of product strategy, said that since Check 21's passing "substitute checks" have become very popular in corporate settings, seen as a safer and more efficient way to transfer money. Systems like Fiserv's eliminate sending paper checks through multiple bank branches, as well as digitally controlling the access bank employees have to funds.

While Fiserv is not the only company to capitalize on Check 21, Gillespie said Fiserv has tried to take a new approach by creating a fully browser-based system. Since the system is part of Fiserv's BankLink system – which includes tax and loan payments, wire transfers and balance reporting – customers will start with a familiar interface.

The system is currently being tested at the Texas-headquartered Guaranty Bank and is expected to go live in June.