Gizmodo recently posted an interesting article saying that USAA, a privately held bank/insurance company, is allowing iPhone customers to deposit checks into their account via an App Store application. The USAA application is scheduled to have it’s first update this week. The update will add a new Check Deposit feature. The feature will allow customers to take a picture of both the front and the back of the check (with the iPhone’s built-in camera) and have the check automatically deposited into their bank account.

“We’re essentially taking an image of the check, and once you hit the send button, that image is going into our deposit-taking system as any other check would,” said Wayne Peacock, a USAA executive vice president.

Customers will not have to mail the check to the bank later; the deposit will be handled entirely electronically, and the bank suggests voiding the check and filing or discarding it. But to reduce the potential for fraud, only customers who are eligible for credit and have some type of insurance through USAA will be permitted to use the deposit feature. Mr. Peacock said that about 60 percent of the bank’s customers qualify.

See Original Article HERE.