Electronic check conversion

(redirected from Check Conversion)

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.
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.
PUBLICATION OF CONSUMER GUIDE ON ELECTRONIC CHECK CONVERSION TRANSACTIONS