Introduction   |   Benefits   |   How It Works   |   Fast Facts   |   FAQ   |   Business Checks

 

Benefits of Conversion

Check conversion is among the fastest growing types of electronic payment applications due to its enormous benefits. When educating your customers on check conversion, be sure to emphasize the following points:

Check conversion is simple.

  • As with any new system, check conversion requires some systemic changes; however, these changes are simple for business customers to set up. Once the new system is established, a company immediately begins saving money.
  • Individuals will not need to do anything new or different when their checks are converted, as electronic payment processing has advanced to the point that the processing is seamless and largely transparent to the individual. They may notice that the amount of the payment appears in a different location on their monthly statement.

Check conversion is safe.

  • Check conversion relies on the same secure network used for Direct Deposit and Direct Payment, the Automated Clearing House.
  • The Federal Reserve's Regulation E and the NACHA Operating Rules regulate electronic payments processed through the ACH Network. Because of Reg E and NACHA Operating Rules, consumers have greater protection with check conversion.
  • Check conversion is the fastest-growing type of electronic payment ever.
  • Businesses are required to provide notice to customers prior to the receipt of each check to be converted to an electronic payment for ACH processing.

Check conversion is smart.

  • Check conversion reduces time and resources needed by businesses to process payments, resulting in continued cost savings to companies and the U.S. economy.
  • Electronic processing reduces the burden on our nation's transportation systems and the environment. Every year, paper checks use more than 674 million gallons of fuel and add more than 3.6 million tons of CO2 to the environment.

Did You Know

Each year, 16.4 billion checks are deposited by merchants at local bank branches. A typical "point of sale" check will travel 48 miles before it is returned to the check writer. The cost to the environment is: 80,099 tons of paper produced, 162 million gallons of fuel consumed, 789 thousand tons of greenhouse gases added to the atmosphere.

Common Types of Check Conversion

  • Accounts Receivable Entry (ARC):
    Conversion of checks that are written by consumers to pay bills, and are converted by the biller.
  • Point of Purchase (POP):
    Conversion of checks that are written at a store checkout counter for goods or services purchased that day. The check is converted at the register, and the voided check is returned to the customer.
  • Back Office Conversion (BOC):
    Conversion of checks that are written at a point of sale (checkout counter, manned billing location) for goods or services. The check is converted later in a centralized location and is not returned to the customer.