Industry Update: Remote Deposit Capture Litigation

Synergent closely monitors legal activity around remote deposit capture (RDC) technology. Recent activity on this front is not cause for alarm, but we want to ensure you have the latest information given the importance of RDC technology services to your credit union and your members.


USAA has been pursuing compensation from various banks, technology vendors, and credit unions for alleged patent infringement of its RDC technology. USAA has filed lawsuits against Miktek, Wells Fargo, and most recently, PNC Bank.

In a statement issued last week about the PNC Bank litigation, USAA Vice President of Corporate Development Nathan McKinley said, “We have spent significant time and resources transforming our technology from an idea on a whiteboard to the service our members enjoy today and led to a revolution in consumer banking. Our goal has always been to be reasonably compensated for the benefits that others in the industry have received from using our RDC patents.”

USAA won two nine-figure judgments against Wells Fargo in the past year totaling more than $300 million in patent-infringement cases related to RDC technology. The company says it is continuing to seek opportunities to create reasonable and mutually beneficial licensing agreements with banks and credit unions for the legal use of USAA’s RDC patents.

Synergent’s RDC Offering & Jack Henry Partnership

Synergent partners with Ensenta (owned by Jack Henry & Associates) for our RDC offering. Our contract with Ensenta includes a strong indemnification clause to protect from lawsuits and liability Synergent and credit unions using the Esenta RDC service Synergent provides

After the USAA/Wells Fargo verdict last year, Jack Henry & Associates provided assurances to Synergent that it will honor all contractual obligations as it relates to their clients’ usage of their products.

Moving Forward

Synergent will remain vigilant on this issue and provide additional updates when available. While we don’t anticipate that your credit union will hear from USAA, please notify us immediately if you receive any communication from USAA suggesting patent infringement. We also ask that you contact us if you learn of any local financial institution receiving this type of communication.

If your credit union is not working directly with Synergent for your RDC solution, it is always good practice to periodically review your credit union’s vendor contract terms regarding intellectual property representations and warranties, indemnification, and limitation of liability.

Please email Ben Jordan, SVP of Information Technology at Synergent, at if you have questions or concerns about this issue.