Accounts Receivable Check (ARC) Conversion gives your company a simple, convenient way to turn checks received from consumers into electronic Automated Clearing House (ACH) debits. Unlike paper checks, the ACH transactions clear in one day, making funds available several days sooner. Converting checks to electronic transactions also reduces paperwork and increases efficiency.

The key to a successful ARC program is giving prior notice to your consumers that his/her check will be converted to an electronic debit. Once notification is provided as specified by the National Automated Clearing House Association (NACHA), INB can scan the MICR line from each check, create batches of ARC entries, and transmit them to the Federal Reserve for collection.

ARC provides:

• Reduced Processing Costs – Less expensive to process ACH and ACH items are less likely to be returned.
• Enhanced Availability and Float Reduction – Your daily ACH transactions are processed the same day, so the funds are available in your account the next morning. Same day availability is provided for on-us items and one-day availability for all other items. Additionally, you’ll receive prompt notification of any ACH items returned for insufficient funds (NSF).
• Improved Risk Management – ARC provides accelerated bad-debt reporting and service termination because ACH items are returned faster than a check.