Bank One has developed a new product that converts consumer cheques into electronic debits for next-day settlement.
Bank One's Electronic Cheque Conversion Services uses high-speed image technology to scan paper cheques and capture accounts receivable data and bank account information. That information is then converted into ACH debits and is processed as an accounts receivable conversion (ARC) payment, the new standard entry class code under recent rule changes by Nacha.
The product has been under pilot with a number of major clients since the beginning of the year. It is designed for corporations that issue large volumes of recurring consumer bills, such as utility and credit card companies.
It makes funds available sooner, automates and expedites the processing of returned items, and reduces manual processes says the bank.