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

PROVISION FOR ORIGINAL COPY OF CHECK:

• Originator must destroy the check (source document) within 14 calendar days from the settlement date of the ARC entry.
  
• Originator must obtain a reproducible, legible, image, microfilm, or copy of the front and back of check for a period of two (2) years from the settlement date of the original entry.

 NOTIFICATION/AUTHORIZATION:

Prior to the receipt of each check that will be used as the basis of origination of an ARC entry, the Originator is required by the NACHA Operating Rules to provide notice to the Receiver that receipt of the Receiver's check will be deemed to be the Receiver's authorization for an ACH debit entry to the Receiver's account.

After notification to the Receiver that checks will be used to initiate an ARC entry, The Receiver must be given the opportunity to Opt-out. Originator must provide a form or another means for Receiver to notify them if they do not wish to have their checks used for an ARC debit against their account.

EFT NETWORK ARC SYSTEM - HOW IT WORKS:

• Originator receives check for payment of goods or services.

• Originator transfers the check MICR data into the EFTN software (Windows or NT based PC or Network):

  • Check is scanned or imaged using a check reader or RDM imager.
    

  • The check can also be scanned by a check imager. In addition to sending the proper information into the software the imager will also save the image to a file where it can be maintained for 7 years.
    

  • The data can be imported via ASCII comma delimited file.
    

• Check data is batched by the software and transmitted to EFTN processing center for processing through the ACH.
  

• EFTN translates the data into a NACHA file and sends the files through to the ACH.
  

• Payment is made to Client in 24-48 hours provided that the Client transmits to the EFTN processing center before the daily cutoff time.
  

• In 4 business days all results files (paid and unpaid items) are transmitted back to the Originator via the software.
  

• All NSF checks can be immediately resubmitted by clicking on them.
  
   

SOFTWARE FEATURES:

The EFT Network software includes some very important features to facilitate the handling of checks. The most important feature is the ability to recall previously entered check account and routing numbers. The first time a check is entered via a check reader or scanner the Originator must enter the account name, dollar amount of the check, customer account or unique ID number, and dollar amount of the check. On the following payment periods all of the customer information will appear as soon as a check with the same routing and account number is entered.

The EFT Network software features unique reporting capabilities which enables the Originator to receive all returned check files through the software so that the Originator can view, print, or export the files. In addition the Originator can automatically resubmit NSF returns by clicking on them and then transmitting them to the processing center.

Return fees may also be automatically submitted with our special fee collection feature. Fees can be submitted for any item that has been returned as long as the Originator as a separate written authorization for such fee collection.

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