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Check conversion is simply the method some companies use to electronically process payments you make by check.
When you write a check that may be converted into an ACH electronic payment and processed through the ACH Network, some information - the amount of the payment, the ID (routing) number of your bank, and your account number - is captured from your check, and a one-time electronic payment is deducted from your account. For the most part, when checks are converted, you will not need to do anything new or different. The major change is how the company processes the payment.
There are a few different methods of converting checks for ACH processing, depending on where you write the check. The most common forms of electronic check conversion you'll encounter include:
Paying Bills by Mail
- The check is converted into an ACH electronic payment and processed through a secure system.
- An image of the check is archived, and the original is securely stored until it is destroyed.
- The ACH electronic debit to your bank account will be an "ARC" (Accounts Receivable Entry) transaction.
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Making a Purchase in a Store
- The check is electronically converted at the cash register or converted later in a centralized location.
- The original check may be voided and returned to you. In this case, the electronic deduction to your bank account will appear on your statement as a "POP" (Point of Purchase) transaction.
- Or an image of the check may be archived, and the original securely stored by the business until destroyed. In this case, the debit to your bank account will be a "BOC" (Back Office Conversion) transaction.
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As with other electronic payments, including Direct Deposit and Direct Payment, check conversion saves money by reducing paper and time needed to process paper checks, while increasing the security of your account information.
Use the links on this site to learn more about ACH-based check conversion:
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How It Works
Curious to know how check conversion works?
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Fast Facts
The United States relies on paper checks more than any other industrialized nation.
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FAQ
Get answers to frequently asked questions about check conversion.
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There is an environmental impact to using paper checks. In addition to the natural resources used to manufacture and print paper checks, processing the checks relies heavily on our nation's transportation systems, including trucks and airplanes. Every year, paper checks use over 674 million gallons of fuel and add more than 3.6 million tons of greenhouse gases/CO2 to the environment.
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