Page 1 Accounts Receivable Conversion System
Page 2 ARC - How it Works
Page 3 What Are The Benefits?

DESCRIPTION:

Accounts Receivable Conversion (ARC) is an ACH processing service that converts a paper check, received in the mail or at a payment location, into an electronic check. The check is converted into an Electronic Funds Transfer (EFT), and processed through the Automated Clearing House (ACH).

The electronic check is presented to the check writer's (Receiver) financial institution and funds are transferred into the Client's bank (Originator). The ARC system can provide a file used to update payment information for your in-house accounts receivable system, eliminating data entry.

ARC allows the Originator to avoid the time consuming processing of paper checks, bank runs for deposits and data entry. In most instances checks submitted electronically are processed at the bank before paper checks, giving you quick access to valuable operating capital.

NACHA's (National Automated Clearing House) ARC rule went into effect on March 15, 2002, establishing a new Standard Entry Class Code, allowing the implementation of this form of check conversion. NACHA has reported that more than 24 million checks were converted to ARC items in 2002, and almost 19 million transactions amount in the first quarter of 2003. Showing a 156% increase in ARC transactions in a three month period.

HOW ARC WORKS:

1. Originator receives check for payment of goods or services via mail or at a payment center.
   
2. Check is scanned into the software, and data is transferred into the ARC software.
   
3. Check data is batched and transmitted to EFT Network for processing for presentment through the ACH.
   
4. Receiver's account is debited, and cleared funds are deposited into the Originator's account.
   
5. Files are made available on our secure website for export into your in-house accounts receivable system.

Click Here for a Demo of our ARC Product

 TYPES OF CONSUMER PAYMENTS

Following are the different types of payments eligible for ARC.

TYPES OF CONSUMER PAYMENTS
Nature of Payment	Examples of Payments
Fixed Amount, regularly recurring payments	Auto and other loans, mortgage payments, rent payments
Variable amount, regularly recurring payments	Utility bills, state and local taxes, credit card bills
Variable amount, variable frequency payments	Mail order purchases, television home shopping purchases, donations
Variable amount, variable frequency payments received in person but held until the end of the day for batch processing	Department store payments, recreational facility fees, property management rent collections

CHECKS ELIGIBLE FOR ARC:

• Check must contain a pre-printed serial number.

• Check must be drawn on a consumer account.

• Check must be completed and signed by the consumer.

• Dated 180 days or less from the date the entry is being transmitted to the RDFI.

CHECKS NOT ELIGIBLE FOR ARC:

• Cashier’s checks and treasurer’s checks

• Travelers’ checks

• Convenience checks drawn on credit card accounts.

• Money orders.

• Third party items.

• Corporate checks.

• Drafts drawn on federal, state, or local governments.

• Items payable in a foreign currency.

• Unsigned items.