Check Conversion
What is check conversion and how does it work?
Check conversion is the process of converting your check payments into electronic payments that are processed through the Automated Clearing House (ACH). Check conversion saves considerable time and money in payment processing. In addition, it results in fewer check returns, earlier fraud detection, and fewer errors.
How widespread is the use of check conversion?
Check conversion is an increasingly common procedure for converting paper checks to electronic processing through the Automated Clearing House. It may also be referred to by other names, such as Accounts Receivable Entry (ARC), Point of Purchase (POP), electronic check, or e-check.
Do converted checks clear faster?
The payment may clear faster when converted to an ACH payment. Since these payments generally do clear faster, it is important to insure that adequate funds to cover the amount of the payment are actually in the account at the time the payment is made.
What happens to checks that are converted?
The payment information is captured from the check, and the check is securely stored until destruction. If the payer is in person and the check is converted at that time, the original check is voided and returned to the payer.
How does a converted check appear on a bank statement?
A check that has been converted for electronic processing via the ACH network may appear in the same section of your bank statement as ATM withdrawals, direct payments and other electronic payments, or it may remain in the check listing. The University’s name, the check number, the amount, and the date of the payment will be on the bank statement to allow for easy recognition of the payment.