Managing finances and handling payments quickly and securely is crucial in today’s fast-paced business world. With the rise of digital payments, traditional methods like paper checks may seem outdated. However, businesses and financial institutions continue to rely on checks for various transactions. Check scanning software has become an essential tool to streamline check processing and improve operational efficiency.

Check scanning software allows businesses to digitize checks, making the process faster, more secure, and easier to manage. Whether you’re a small business owner, a financial institution, or anyone dealing with check transactions, understanding how to use check scanning software effectively can save time, reduce errors, and enhance security.

What Is Check Scanning Software?

Check scanning software is a specialized tool that enables the conversion of paper checks into digital images and stores related data in a database for future use. It uses check scanners that capture the MICR line, saving the account, routing, and check numbers. It uses Optical Character Recognition (OCR) technology to extract key data from the check, including the payor’s name and address, check date, and the check amounts. This digitized information can then be processed for payment, stored for future reference, or transmitted to other financial institutions for clearing.

By digitizing checks, check scanning software helps reduce manual data entry, eliminate paper handling, and improve the accuracy and efficiency of check processing. Many businesses also use check scanning software to capture data and images of the front and back of each check, making it easier to store and retrieve check images for auditing or customer service purposes.

Why Use Check Scanning Software?

1. Efficiency: Check scanning software allows businesses to process checks much faster than manual methods. This reduces the time spent on data entry and processing, freeing up valuable resources for other tasks.
2. Accuracy: The software automatically extracts key information from the check, reducing the risk of human error. This ensures that account numbers, routing numbers, check numbers, and check amounts are entered correctly every time.
3. Cost-Effective: By eliminating the need for paper-based systems and manual labor, check scanning software can significantly reduce operational costs for businesses.
4. Security: Check scanning software often includes features like encryption and secure image storage, ensuring that sensitive financial data is kept safe.
5. Compliance: Check scanning software helps businesses comply with banking regulations and standards, such as the Check 21 Act, which allows for the electronic transmission of check data and images to your bank.
6. Improved Customer Service: Storing digital check images allows businesses to quickly retrieve and review check data, leading to faster response times and better customer service.

How to Use Check Scanning Software

Now that we understand check scanning software and why it’s important, let’s explore how to use it effectively.

1. Set Up the Check Scanner

Before using check scanning software, you’ll need a standard check scanner. These devices are designed specifically to scan checks and capture high-quality images of both the front and back of the check, along with the MICR line data. When selecting a scanner, it’s essential to ensure compatibility with the check scanning software you plan to use.

EZ-Scan® Workstation, PST’s flagship desktop check scanning software, is designed to work with all major brands of check scanners. It provides seamless integration with scanners, allowing you to scan checks and manage images effortlessly.

Once you’ve selected your scanner and installed the software, follow the manufacturer’s instructions to connect the scanner to your computer. Many check scanners use USB connections, so you should be able to plug the device directly into your workstation.

2. Install and Configure the Software

After setting up the scanner, the next step is to install and configure your check scanning software. For instance, if you’re using EZ-Scan® Workstation, the installation process is straightforward. The software supports all versions of  Windows, and the installation wizard will guide you through each step.

During the installation, you’ll be prompted to choose preferences such as the location to store scanned check images, output formats (e.g., TIFF, JPG), and integration settings for connecting the software to your bank or payment system.

Configuration also includes setting up user accounts and permissions if your organization has multiple users accessing the software. You can assign different roles, such as admin, auditor, or operator, to control access and ensure the security of sensitive financial data.

3. Load and Scan Checks

With your software configured, it’s time to begin scanning checks. Place the checks into the scanner feeder, ensuring they are correctly aligned to avoid errors during the scan.

Once the checks are loaded, select the appropriate scanning option in the software. Most check scanning software will offer several options, such as:

• Single Scan: Scans one check at a time.
• Batch Scan: Allows you to scan multiple checks simultaneously, saving time.

EZ-Scan® Workstation supports batch scanning, which is ideal for businesses that process a high volume of checks. The software automatically captures the front and back of each check, along with the MICR data printed on each check, and stores it digitally.

4. Review and Edit the Captured Data

After scanning the checks, the software can use OCR (Optical Character Recognition) to extract important data, such as:

• Payor Name
• Payor Address
• Check Date

It’s crucial to review the captured data for accuracy. The software often includes built-in verification features to highlight potential errors, such as mismatched or invalid routing numbers. In many cases, you can manually correct any mistakes directly within the software.

With EZ-Scan® Workstation, the software also integrates with verification tools to ensure that the scanned data matches the format and criteria established by your bank or payment processor.

5. Save or Transmit the Data

Once the data is verified, you can choose to save the check images and data locally or transmit it to your bank or payment processor for further processing. Check scanning software like EZ-Scan® Workstation offers flexible options for saving or transmitting data:

• Local Storage: The scanned check images are stored securely on your local system or server storage for easy retrieval.
• Transmission to Bank: Using secure channels, you can transmit check data and images to your bank for further processing, such as electronic check clearing.

EZ-Scan® also offers license-free retrieval viewers, which means that businesses can easily access and view check images without additional licensing costs. This is especially useful for customer service inquiries or auditing purposes.

6. Maintain Security and Compliance

One of the primary advantages of using check scanning software is enhanced security. Ensuring that your system complies with data protection regulations and best practices is crucial. Check scanning software typically includes features such as:

• Audit Logs: To track user actions and changes to check data.
• Role-Based Access Control: To restrict access to sensitive information.

7. Review and Archive

Check scanning software makes it easy to review and archive digital check images for future reference. Whether you’re storing the images for regulatory compliance, auditing purposes, or customer inquiries, digital archives are far more efficient than paper-based records.

Conclusion

Using check scanning software can significantly improve the efficiency, accuracy, and security of check processing. By digitizing paper checks, businesses can streamline payment workflows, reduce errors, and enhance customer service.

PST’s EZ-Scan® Workstation is a powerful check scanning solution that offers total data and image management, including verification software, flexible retrieval options, and the ability to control all major brands of check scanners. Whether you’re scanning checks for deposit, archiving, or transmission, EZ-Scan® ensures a seamless and efficient experience.