Image Cash Letter (ICL)
These days everything seems to be moving at the speed of light. We get goods and services delivered Same and Next day. You can even order pizza online and have it at your door in 30-minutes! So why not speed up check deposits? Well, we now have that as well. At Green, we are famous for our Same and Next Day deposit times. Now with ICL we can process a batch of checks directly into your bank account in minutes!
The information is
processed to the bank
Information is taken from
check images and transferred
into electronic code.
How Does it Work?
Image Cash Letter (ICL) is like taking a picture of the front and back of a check and sticking it on a PDF. Then, strip all of the data off of the check and place that into a whole bunch of lines of funky code that only computers read.
We send that to your bank. Your bank's computer reads the file and makes the deposit, then copies it on to the Feds for payment of each item.That's the nuts and bolts of it.
How is this Different from ACH?
ACH processing is 4-5 day funding.
That means you run your checks on Monday and you get paid your funds on Friday or the following Monday.
With ICL you get SAME DAY funding!
That means you run your checks on Monday and you get your money on Monday.
With ACH you Pay to Reprocess Returns.
That's right. No do-overs. A check bounces unpaid and guess what? You get to pay to run it again.
With ICL you get FREE Reprocessing!
That means you if a check bounces and you want to run it again we will not charge you. You can reprocess returns up to 2 additional times for FREE.
ACH Limits and Reserves.
With ACH you have Limits and a Reserve. Those limits keep you from growing unless you are "approved" to process more. Those Reserves hold up your cash flow for 90-180 days, usually at 5-10% of your revenue. That adds up quick. If you process $50k a month your ACH Reserve could be anywhere from $7,500 to $15,000.
With ICL there is No Reserve or Limits
Process as many items as you want, up to a maximum check amount of $25k each. Run $100 a day or $100 Million. Do all of this without a reserve.
How do I set this up?
ICL is NOT EASY. Most bankers do not even know what it is, even though 95% of the banks already use it on the back end to settle to the Federal Reserve each day.
The first question is do you qualify? To answer that you will need to answer the following:
1. Do you process at least 1000 checks a month?
2. Do you have a substantial amount of money in the bank?
If you answered yes to both of those questions then you may be a candidate for Image Cash Letter. If you answered no then you may want to look at Remote Deposit.
We will need to jump on a quick conference call to discuss the steps necessary to move this forward with your operation and your bank.