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About Back–Office Conversion
In May 2006, NACHA announced a new Automated Clearing House (ACH) check processing application, known as back–office conversion (BOC), which allows retailers and billers that currently accept checks at the point–of–sale (POS) or at manned bill payment locations to convert checks to ACH debits in a centralized back office. Designed to streamline check processing, acceptance and conversion for financial institutions, businesses and retailers, BOC will result in fewer incorrect check conversions, reducing in–house processing and time spent correcting errors. Effective March 16, 2007, key elements include:
- BOC allows retailers and billers that currently accept checks at the POS or at manned bill payment locations to convert checks to ACH debits in the back office.
- Consumer checks, and business checks valued at less than $25,000 and lacking an auxiliary on–us designation for opting out, may be converted in the back–office.
- Companies that intend to back–office convert paper checks must provide prominent notice for consumers in the form of in–store signage and paper handouts.
For additional information, visit Tools and Resources.
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