The way it works is you receive a check (or write yourself one from another account), scan both sides with your TWAIN scanner (I use my Canoscan), and your bank sends a confirmation that it’s uploaded, then has a human somewhere verify it’s a valid check. Once they send you confirmation that it’s actually deposited, you shred the original check – no need to keep the paper around anymore.
Keep in mind, one of the things I learned when I was checking out Pixily, Shoeboxed, and the [Scansnap] (which I still use) is that the IRS is fine with you not keeping paper copies of anything, as long as you have good digital copies in some kind of well organized system, like file folders or Shoeboxed’s organization schemes. My stuff is backed up with [Backblaze] (another experiment success), so my folders work for me. Scansnap will encrypt PDFs too, or you can just encrypt at the backup level with Backblaze.
I have to say it was murder setting up the online deposit with Everbank, the company I chose. Seriously, their approach is not streamlined. In all other ways, I love their service and their bank, but the setup for online deposit took more phone calls than I care to admit. But once I got it done and saw that deposit go through, I almost felt it was worth it. I chose Everbank, incidentally because other banks like Chase and Wells Fargo do it stupidly, charging you both a monthly fee or item fee – I’m not paying to make everyone’s life easier – those guys should pay us with airline miles or reward points to stop making them have tellers and drive throughs, just like they do for signing up for electronic statements.
To make matters worse, those places make you buy a scanner from them, claiming only their scanner will work, as well as infect your computer with some cheesy installable software that comes with it. I’ll be damned if I’m doing either of those things. Everbank lets you use any TWAIN compliant scanner – if it generates a decent scan – that part’s on you – and their software is a simple browser plugin, as it should be.
Anyway, I’m quite pleased now with both Everbank and online deposit. It works great.