Whether you are writing business checks or receiving them from your customers, it's important that you understand how the rule change applies, and how it will impact your business.

What the Rule Change Means for Business Originators

Business "originators" (companies collecting checks and originating ACH conversions) need to be aware of which business checks are ineligible and which are eligible for conversion.

See the detailed list of checks that cannot be converted under ARC and POP.

Checks that can be converted under ARC and POP include:

• Checks that are 6 inches in length
• Checks longer than 6 inches WITHOUT an Auxiliary On-US field
• Checks in the amount of $25,000 or less

If the consumer or business customer has contacted you to opt out, the check CANNOT be converted.

Download additional important information about the new rule »

What the Rule Change Means for Business Receivers

Previously, all business checks were ineligible for conversion (although in practice some may have been incorrectly identified as personal checks and converted.)

Under the rule change, a business "receiver" (company writing the check) that wants to opt out of ACH check conversion must use one of the following options:

• Use checks with an Auxiliary On-Us field. Checks with an Auxiliary On-Us field cannot be converted.
• Notify your business partners or others to whom you write checks that you want to opt out of check conversion. If the check is being written at a store that uses POP conversion you will need to provide another form of payment.

Also, any check in an amount greater than $25,000 is ineligible for conversion.

What Does it Mean to Convert a Business Check?

A business check is "converted" when that check is taken either at the point-of-sale or through the mail for payment, the account information is captured from the check, and an electronic transaction is created for ACH processing. For more details about business check conversion, review the Frequently Asked Questions, or download this PDF: What the Rule Change Means to Your Business.