How a Software House Sells Remote Capture Directly to Merchants

Omaha, Neb.-based RemitPro Inc. is teaming up with payment processor Vanco Services LLC to open up a new category of smaller merchants to the developer of electronic-check software while removing the need for those businesses to change banks. RemitPro produces the eRemitPro data-capture and imaging application used by 150 clients with more than 3,000 workstations, says John Sarich, executive vice president of sales and marketing. Core customers include some major securities and financial companies such as mutual-fund provider American Century Investment Services Inc. and St. Louis-based brokerage A.G. Edwards & Sons Inc., which uses RemitPro's system in 750 locations, according to Sarich. The eRemitPro system consists of a desktop check scanner, a workstation check-imaging program and a link to the RemitPro Web site that allows clients to scan checks and prepare electronic deposits from their desktops. Once sent, clients can view deposits online and link them to their accounting and ledger systems. RemitPro's check-imaging software interfaces with the back-office systems of about a dozen of the top 25 banks. RemitPro wanted to sell its services to smaller businesses, but didn't want to build direct connections into every bank with whom those businesses have depository relationships. “We're not going to build an interface into 6,000 banks,” says Sarich. Under the agreement announced last week with Minnetonka, Minn.-based Vanco, RemitPro found a solution. Vanco, which provides credit card, automated clearing house, and other processing and settlement services, has relationships with independent sales organizations as well as Wells Fargo & Co. Deposits originating with Vanco's merchants using eRemitPro will be forwarded by Vanco through Wells for settlement as ACH or Check 21 items with each merchant's bank. “It gives them the opportunity to use remote deposit capture … without having to open up a new bank account,” says Sarich. A Vanco executive could not be reached for comment Thursday, but the deal is notable because two non-bank entities are performing the starring roles in a core banking service?deposit-taking?while leaving only supporting roles for banks. Banks, according to Sarich, see remote deposit capture mostly as a way for businesses to get money to the banks faster. As a developer of financial software, RemitPro also sees the service as a way for businesses to automatically link deposits to their accounting and ledger systems for detailed analysis, reconciliation and workflow improvements. “The banks took a great concept and turned it into a commodity overnight,” says Sarich. “We actually enhance the treasury function within a corporation.”