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 ?
has installed a new solution for back-office check conversion to reduce the time and costs associated with processing checks.
Businesses, however, are given an opportunity opt out of the check conversion process now that it applies to them.
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.
Morgan (NYSE: JPM) Treasury Services today launched an enhancement to its Check Print product suite, Network Check Conversion.
Yet, a significant number of retailers and billers alike have examined the business case for check conversion and found it lacking.
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.
Solutran will provide CVS Electronic Check Conversion Services
PUBLICATION OF CONSUMER GUIDE ON ELECTRONIC CHECK CONVERSION TRANSACTIONS
ECHO) have teamed up to offer new grocery check conversion payment solutions for merchants.
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.
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.
Bank is prepared to meet the needs of retailers and other customers who wish to take advantage of check electronification opportunities for point-of-sale (POS) payments when NACHA's check conversion rules change for Back Office Conversion (BOC) on March 16, 2007.