Where is the Money in Remote Deposit Capture?

Sales organizations are trying to convince agents that Check21 remote deposit can be a profitable product to sell. Remote deposit capture is a volume driven business. The product is priced at a flat rate per transaction. There are no discount fees associated with the product.

Research firm Celent says there are about about 14.5 millionUS merchants who are qualified for remote depoisnt capture. Celent predicts about 3.2 million merchants

Independent sales organizations face competition from banks who offer free or low cost scanners and low per transaction fees. Banks offer the product as a loss-leader in order to entice businesses to establish direct deposit accounts or get other financial services.

Sales organizations can follow the same strategy. Offer remote deposit to get a foot in the door. Then, cross-sell the merchant other products and services that have higher margins and create more profit.

Sales agents have to hustle to find merchants that have enough transactions to make the cost of sales payoff in profits. Industries that direct sales organizations should target include government, property managers, doctors’ offices and health-care providers, and car dealerships.

The good news about selling remote deposit capture is that once a merchant is established, it doesn’t change payment processing provider. Small profits from a lot of customers can add up to substantial and stable income over the course of time.