First Online, Remote Check Deposit Service for Small Businesses Introduced
“Small businesses don’t want to be left behind in the transition from physical to electronic payment transactions. Conversely, banks have been struggling to find technology that provides the required functionality while at the same time is also cost-efficient,” Chip Kahn, chief executive officer (CEO) of IP Commerce. “The payments services resulting from our partnership with BankServ will address a critical market need among small businesses and will also provide revenue-generating opportunities for BankServ customers who service the small business sector.”
DepositNow is an easy-to-use, web-based system designed to meet the growing demand for technology-based payments services as articulated by small businesses. Using a small scanner and high-speed Internet access, the system allows businesses to scan checks and deposit them into their bank of choice. The system’s integrated accounts receivable package is capable of assimilating with any accounting software or checking account and automatically matches deposits to invoices and customers, encrypts data for secure transmission, and stores the information for on-demand research and an audit trail. Small business will benefit from convenience of remote deposits, real-time updates and immediate access to critical funds, and improved deposit accuracy and management. DepositNow requires no IT development and can be fully operational in less than 10 days.
Currently, small businesses interface with credit card companies and financial services in the payments ecosystem through highly proprietary relationships based on one-to-one technology connections – either large scale or through some sort of file transfer facilitated by electronic data interchange (EDI). As founding members of the PASS™ (Payments as a Secure Service) Consortium, BankServ and IP Commerce are committed to redefining this relationship by enabling Independent Software Vendors, System Integrators and Value-Added Resellers to create more service-rich, innovative financial management solutions and offering best-in-class providers through a single service provisioning system. DepositNow is available from BankServ and as a PASS member; the solution will be available via Microsoft’s forthcoming operating system Windows Vista, expected to launch in early 2007.
The PASS Consortium, initiated by IP Commerce, was formed to create several tangible benefits for small businesses, including the ability to receive payments, process transactions, pay invoices, obtain financial services and better manage cash. These and other processes will be fully supported through any bank, credit card company or supplier with members of the PASS consortium. In addition, all the functionality provided through member organization offerings will be fully integrated with small business accounting systems, essentially integrating the traditionally disparate world of cash register and the back office. Participants in PASS include Chase Paymentech, PayPal, Internet Commerce Corporation, CIT Group, Inc., Pay by Touch and others.
“Small- and medium-sized businesses are hamstrung by dedicated relationships that have been defined by technology such as hardware and their associated legacy payment processing methods,” Kahn said in a prepared statement regarding the formation of the PASS Consortium. “Microsoft Windows Vista and other new software technologies delivered as secure services offer businesses and their trusted providers new revenue opportunities and efficiencies.”
DepositNow, currently offered to merchants by BankServ, is enabled by leveraging IP Commerce’s IP Payments Framework™ (IPPF). IPPF is a Service-Oriented Architecture (SOA) framework that hosts the devices and applications required to make DepositNow possible. IPPF breaks down traditional barriers related to payments services by connecting banks, financial service providers, businesses, software vendors and resellers, and offers the opportunity for its partners, such as BankServ, to engage the market with innovative software offerings.