Mellon Global Cash Management (GCM) has completed the rollout of its accounts receivable cheque (ARC) conversion technology across its retail lockbox network, and says the system already accounts for a quarter of its lockbox payments processing volumes.
Rule changes by electronic payments association Nacha allow billers to convert cheques into an automated clearinghouse (ACH) debit.
Mellon says companies using its ARC technology have recorded fewer insufficient fund payments, and have experienced quicker notification of returned payments and reduced transaction costs.
Robert Stasik, EVP and head of Mellon GCM, says: "Regardless of whether they process their consumer payments in-house or with a third-party provider, business-to-consumer companies are finding that ARC offers significant financial savings and are moving to adopt the service quickly."
Stasik says a range of organisation across a variety of industries are adopting the cheque conversion service.