ARC ~ ACCOUNTS RECEIVABLE CONVERSION

How much are you paying to deposit your checks? Believe it or not most companies don't even know. We can calculate your savings by you simply telling us:

Checks deposited monthly _________ Bank "Deposit Fee" per check ________

Hours spent per month:_________ Bank "Processing Fee" per check _______
1) Preparing bank deposit
2) Driving to bank Bank "Clearing Fee" per check ________
3) Standing in line at bank
4) Driving back to your office

Hourly rate of Staff _________ Bank "Miscellaneous Fee" per check _____

Please fill out the information above and see if we can save you money every month!

Businesses utilize these services to facilitate collection of their customer's payments interoffice. All daily checks received in the office can be converted into electronic items, allowing you to receive your money faster and save time and money on bank fees, depository procedures and allow increased cash flow overall. We offer image retrieval, enabling your payment teams to research items as needed. Reporting for reconciliation is efficient and, best of all, easy.

Costs are determined on volumes and are custom designed to fit your needs.
Eliminate driving to the bank.
Eliminate paper checks.
Eliminate bank return fees.
Eliminate bank check deposit slips.
Eliminate time-consuming paperwork.
Never go to the bank to deposit checks again, make your office a BANK BRANCH

Effective March15, 2002, this new SEC Code will enable Originators to convert to a Single Entry ACH debit a consumer check received via the U.S. mail or at a dropbox location for the payment of goods or services. The consumer's source document (i.e., the check) will be used to collect the consumer's routing number, account number, check serial number, and dollar amount for the transaction.

For an ARC entry, a check or sharedraft provided to the Originator by the Receiver via the U.S. mail or at a dropbox location must be used by the originator as the source document for the Receiver's routing number, account number, check serial number, and dollar amount. To be used as the source document for an ARC entry, a check or sharedraft must (1) contain a pre-printed serial number, (2) be drawn on a Consumer Account, and (3) be completed and signed by the Receiver.

The following may not be used as the source document for ARC entries: (1) checks drawn on corporate or business accounts, (2) third-party checks, (3) demand drafts and third-party drafts that do not contain the signature of the Receiver, (4) credit card checks, (5) obligations of a financial institution (e.g., travelers checks, cashier's checks, official checks, money orders, etc.), (6) checks drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank, (7) checks drawn on a state or local government, or (8) checks payable in a medium other than United States currency.

During initial processing of an ARC entry, the Originator may not key-enter the routing number, account number, or serial number from the Receiver's source document. An Originator may, however, key-enter such information to correct errors relating to MICR misreads, misencoding, or processing rejects.

In addition to the other warranties contained within these rules, each ODFI initiating an ARC entry warrants to each RDFI, ACH Operator, and Association that:

The amount of the entry, the routing number, the account number, and the check serial number are in accordance with the source document.
The originator must retain a reproducible, legible, image, microfilm, or copy of the front and back of the Receiver's source document for each ARC entry for two years from the Settlement Date of the ARC entry. An RDFI that receives an ARC entry may send to the ODFI that originated the entry a written request for a copy of the source document to which the ARC entry relates. The RDFI's written request must be received by the ODFI within two years of the Settlement Date of the ARC entry. Upon receipt of the written request, the ODFI warrants to the RDFI that it will send a copy of the front and back of the Receiver's source document within ten (10) banking days. The copy must indicate that it is a copy on its face.
The source document to which the ARC entry relates will not be presented or returned such that any person will be required to make payment based on the source document. In addition to each RDFI, ACH Operator, and Association, this warranty runs to any other party that may be liable on the source document.
The source document to which the ARC entry relates must be destroyed within fourteen days of the Settlement Date of the entry.
Each ODFI breaching any of the warranties shall indemnify every RDFI, ACH Operator, Association, and any other party covered by the warranty from and against any and all resulting claim, demand, loss, liability, or expense, including attorneys' fees and costs, resulting directly or indirectly from the breach of these warranties. For more detailed information click here.