USAA, a bank that operates almost entirely online, will accept website deposits made using photos of checks taken with the iPhone. Until now, it’s required ultra high-res scans of checks, made with an unpleasant Java application that runs in on normal computers’ web browsers.
Here’s Susan Stellin of the New York Times:
“We’re essentially taking an image of the check, and once you hit the send button, that image is going into our deposit-taking system as any other check would,” said Wayne Peacock, a USAA executive vice president.
Customers will not have to mail the check to the bank later; the deposit will be handled entirely electronically, and the bank suggests voiding the check and filing or discarding it. But to reduce the potential for fraud, only customers who are eligible for credit and have some type of insurance through USAA will be permitted to use the deposit feature. Mr. Peacock said that about 60 percent of the bank’s customers qualify.