Electronic check conversion

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Electronic Check Conversion

A form of payment in which the payer writes the payee a check, but in which the actual funds are debited/credited electronically. The U.S. Treasury has used electronic check conversion to make large payments online.

Electronic check conversion.

Electronic check conversion is a payment process in which you give a payee a check, but the actual payment is processed as an electronic funds transfer.

The payment is automatically debited from your account using the account, routing information, and bank ID information on your check, which is either voided and returned to you or destroyed.

A business must notify you before it uses electronic check conversion to process your payment. Keep in mind that an electronic funds transfer will be completed much more quickly than a check, so it's important to have the funds available in your account before you authorize an electronic check conversion.

As with any other type of electronic funds transfer, you have the right to ask your bank to investigate any errors or misuses.

References in periodicals archive ?
March 12 /PRNewswire/ -- Back Office Conversion (BOC), the newest form of check conversion, becomes available in the marketplace on Friday, March 16, 2007 with the effective date of NACHA's rules.
The proposed revisions to the regulation would provide guidance regarding the rights, liabilities, and responsibilities of parties engaged in electronic check conversion transactions and would provide that payroll card accounts are accounts covered by Regulation E.
Solutran will provide CVS Electronic Check Conversion Services
Back-office Conversion (BOC) to Boost Electronic Check Conversion and Streamline Check Processing
A second consumer guide, What You Should Know about Your Checks, discusses more broadly the ways that check payments have changed, including the increased use of electronic check conversion, a process separate from Check 21.
ECHO) have teamed up to offer new grocery check conversion payment solutions for merchants.
14 /PRNewswire/ -- With businesses and the financial services industry gearing up for back office check conversion, NACHA - The Electronic Payments Association has released resource materials that businesses and financial institutions can use to begin training customer service staff about the new ACH check conversion application.
Effective on March 16, 2007, the National Automated Clearinghouse Association's (NACHA) newest rule allows for back-office check conversion at retail and other business locations.
The convergence of these two forces -- paper and digital -- will dramatically increase electronic check conversion and processing over the next five years.
With the class B certification of Mobilescape, we can now offer the market's only wireless, handheld check conversion processing technology to our customers," said J.