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Fact Facts about Check Conversion

  • The United States relies on paper checks more than any other industrialized nation, with check volume peaking in the mid-1990s. Since those peak years, check volume has been declining.
  • Due to accelerated processing times and quicker notification of account issues, the ACH-based check conversion process results in fewer bad checks, earlier fraud detection, and fewer errors.
  • Check conversion relies on the same secure network used for Direct Deposit and Direct Payment, known in the banking industry as ACH.
  • In 2004, the number of checks converted for ACH processing increased nearly six-fold over 2003 with total transactions at more than 1.25 billion payments.
  • Check conversion has little impact on the way you shop or pay your bills. You still write paper checks, and all of the processing is done by the business where you make a purchase, or by the company to which you mail a check. The differences you may notice are slight:
  • You will see notices about check conversion printed on your billing statements or posted in stores or businesses.
  • At the cash register, the original check may be voided and handed back to you, or may be kept as usual.
  • When you get your account statement from your bank or credit union, your check may be listed with other electronic payments.

Did You Know

There are many forms of electronic payments, including those initiated with credit cards on the Web or by phone. On this site, use of the term "electronic payments" refers only to electronic payments that are processed through the Automated Clearing House (ACH), the same secure network used for funds transfers by the nation's banks and financial institutions. ACH-processed electronic payments include Direct Deposit, Direct Payment and check conversion.