Remote Deposit Capture for B2B: Process Checks Faster

The fastest way to process business checks is to capture the check image and remittance details when you receive the payment, deposit it electronically, and match it to the open invoice in the same workflow. Remote Deposit Capture (RDC) makes that possible without a trip to the bank or a stack of stubs waiting to be keyed.

The problem is rarely the check itself. It is the days a check spends between the customer's mailbox and your ledger. During that time, the invoice shows open, collections may follow up on a bill that is already paid, and your DSO reports a delay that does not reflect how fast customers actually pay.

This blog explains where check processing loses time, how RDC fixes it, and what finance teams should put in place so faster deposits turn into faster applied cash.

Why Are Businesses Still Receiving So Many Checks?

Because customers choose how they pay, and many still choose paper. The 2026 AFP Payments Fraud and Control Survey found that 87% of surveyed organizations still use checks for some payments, and 72% of those that use them plan to keep doing so for the foreseeable future.

That matches what AR teams see in practice: customers often pay in their preferred format, on their own schedule.

Observation: Many finance teams treat checks as a legacy problem that will fade on its own. A better planning assumption is that checks will stay in your receivables mix for years. The question is whether each check costs you a day or costs you an hour.

What Is Remote Deposit Capture?

Remote Deposit Capture (RDC) is a way to deposit a check electronically by scanning or photographing it, instead of delivering the paper check to a bank branch. The image and payment data travel digitally, and the paper check stays with you until it is securely retained and then destroyed under your policy.

There are two common forms:

• Desktop RDC: A scanner at a central location, used by AR or treasury staff to process incoming mail.
• Mobile RDC (mRDC): A mobile app that lets field staff capture a check with a phone or tablet at the point of collection.

Where Do Checks Lose Time?

Checks lose time at the handoffs, not in transit. Here is a typical path and where delays tend to build up.

Observation: Teams often shorten the deposit step and stop there. But a same-day deposit followed by a four-day posting backlog still leaves the invoice open for four days. The slowest handoff sets your real cycle time, so find that one first.

What Is the Business Impact of Slow Check Processing? 

Slow check handling affects cash visibility, customer relationships, security, and staff time.

• Distorted DSO. Cash that has arrived but is not applied keeps invoices open, which inflates DSO.
• Weaker cash forecasting. Unapplied checks sit outside your aging report, so projections rely on incomplete data.
• Awkward customer conversations. Collections contacts a customer about an invoice they already paid.
• Security exposure. The AFP survey reports that checks remain the payment method most frequently hit by fraud, with 58% of organizations reporting attempted or actual check fraud in 2025. Paper that travels in vehicles, mailrooms, and deposit bags carries more risk than paper that is imaged on receipt.
• Labor. Deposit runs, stub reading, and keying scale with volume, not with value.

How One Top-Ten Foodservice Distributor Closed the Gap

A top-ten U.S. foodservice distributor had field sales representatives collecting checks from customers and carrying them back for processing. The company centralized check and remittance processing on FTNI's ETran platform using remote deposit capture, then rolled out a white-labeled mobile app to more than 300 field reps.

Reps now capture checks by mobile RDC and associate each payment with outstanding invoices through mobile invoice presentment in the same app. The distributor's Enterprise Credit Manager described the change this way: "We no longer have to manually transport check payments." They added that "deposits can be made the same day payments are received" and that average DSO "has decreased significantly in mere months."

The lesson is that the distributor moved capture to the point of collection and tied the payment to an invoice at the same moment. That removed several handoffs at once.

A Five-Step Framework for Faster Check Processing

Use this framework to find and fix the slowest part of your check processing workflow.

Step 1: Map the path of a check from customer to ledger

Follow a sample of checks from collection to applied cash. Record how many hands touch each one and how long it waits at each stage.

Step 2: Centralize intake

Decide where checks are captured. If checks arrive at branches, reps, and a central office, each location is a separate process with its own delays. Fewer intake points mean fewer places for a check to stall.

Step 3: Capture the remittance data with the image

Image the check and its remittance information together. A deposit without remittance detail only moves the manual work from the bank run to the keyboard.

Step 4: Match to invoices with rules and an exceptions queue

Apply payments automatically where invoice numbers and amounts line up, and route short pays and unclear remittances to a person with context attached. This is what straight-through processing means in practice: clean items flow, and only true exceptions get human time.

Step 5: Reconcile and set a retention policy

Tie deposits to bank activity daily, and define how long original checks are retained and how they are destroyed. Follow your bank's RDC agreement and your own records policy.

Manual Check Handling vs. RDC with Automated Cash Application

What Mistakes Should You Avoid?

• Digitizing the deposit but not the remittance. You save a bank trip and keep the keying.
• Leaving multiple intake points unmanaged. A central scanner does not help if reps still hold checks for a week.
• Skipping duplicate-deposit controls. An imaged check must not be deposited twice, so use duplicate detection and clear rules for handling originals.
• Pushing customers off checks too hard. Offer electronic options, but make sure checks are still handled well while customers choose them.

What Are the Best Practices for B2B Check Processing?

• Track time from collection to applied cash monthly, next to DSO.
• Offer an online payment portal so check volume trends down on customers' own terms.
• Put clear limits, approvals, and audit trails around mobile deposits.
• Review exceptions weekly to spot customers whose remittance habits cause repeat problems.

Key Takeaways

• Checks remain common in B2B payments, so plan for them rather than waiting for them to disappear.
• Checks slow receivables at the handoffs between collection, deposit, keying, and matching.
• RDC speeds up deposits. Capturing remittance data and matching to invoices is what speeds up applied cash.
• Map the path of a check first. The slowest handoff is your real bottleneck.
• Centralizing intake and capturing payments at the point of collection removes multiple steps at once.

Frequently Asked Questions

What is remote deposit capture (RDC)?

It is a method of depositing checks electronically by scanning or photographing them, so the paper item does not need to be delivered to a bank branch. Businesses use desktop scanners, mobile apps, or both.

Does remote deposit capture reduce DSO?

It can. RDC shortens the time between receiving a check and depositing it. DSO improves most when the payment is also matched to the right invoice quickly, so make sure the RDC solution can automate remittance capture and matching.

Is mobile remote deposit capture (mRDC) secure for business use?

It can be, with the right controls. Look for a PCI DSS-compliant platform, user-level permissions, duplicate-deposit detection, and audit trails. Your bank's RDC agreement may also set limits and requirements.

What happens to the paper check after it is imaged?

Businesses retain the original for a defined period and then destroy it securely. The retention period depends on your bank agreement and your internal records policy.

Can RDC work with our ERP?

Yes, when the platform integrates with your accounting system. Integration lets applied payments update invoices and aging reports without manual rekeying.

Should we stop accepting checks?

Most B2B finance teams keep accepting them. A more practical approach is to offer electronic options such as an online payment portal, while making sure the checks you do receive are captured and applied quickly.

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Checks are not the problem. The days they spend between your customer and your ledger are. Mapping that path, centralizing intake, capturing remittance data with the image, and matching automatically turns a slow, manual process into one that supports faster cash application and a more accurate DSO.