What is point-of-purchase check conversion?
Point-of-purchase check conversion is the process of converting checks presented to merchants or cashiers into electronic fund transfers. "Electronic fund transfer" represents the process in which a financial institution is instructed to electronically move a specific amount of funds from a customer's account to your account, rather than processing a paper check. When a check is handed to the cashier, it is copied and the account information from the check is used to make the ACH electronic fund transfer. The cashier can void's the paper check and returns it to the customer.

What is electronic check conversion?
Electronic Check Conversion, or "ECC" reduces the cost, time, and risks associated with paper check acceptance. It is a one-time electronic rendering of a paper check and contains a date, payee name, dollar amount, digital signature, bank account number and routing number. A merchant or company submits the check information through the ACH electronic system and the funds are transferred into their account. As a merchant or company, this means that you get your money faster and can recognize problems with specific accounts sooner.

How does the electronic check transaction flow?
When a check is run through a MICR reader, the ABA routing number, account number and check numbers are captured and routed for an authorization response. The actual account information will be routed to a specific institution or third-party provider to be verified. When a response is received back and the check is converted, the transaction will be routed via ACH for settlement. If the customer account does not have sufficient funds, the transaction will be re-presented in an attempt to receive funds. If consumer funds cannot be obtained, the transaction will be returned.

Which bank accounts can be used to make electronic check payments?
Single-entry debit payments can be made from a personal or business checking or savings account. Checks drawn on credit card accounts and money market accounts cannot be used for electronic check payments.

Will the customer's checking account be secure?
All financial institutions regard the customer's information as highly confidential and not to be disclosed. During the ACH check conversion process, only a customer and merchant sees the account information.

What are the benefits of electronic check payment?
ACH check conversion can result in a lesser number of returns, quicker fraud recognition, additional privacy, and reduced processing expense. Electronic payment processing is a virtually seamless method of payment and customers benefit from the reduced time between writing and handling of their checks.

What is the difference between check verification and check guarantee?
Check verification compares the MICR information on a check with a national database that assesses the check writer's status and credit worthiness. Check guarantee is a check service that actually guarantees the face value of checks and protects the merchant against non-sufficient funds (NSF).

Does check conversion go by other names?
ACH-based check conversion may also be called Point of Purchase (POP), Accounts Receivable Entry (ARC), e-check, electronic check, electronic check processing, and check to ACH conversion.