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Identifying Checks Ineligible for Back–Office Conversion
To reduce the number of incorrect conversions and further streamline check processing, NACHA has outlined criteria that makes it easy to identify business and consumer checks ineligible for conversion using BOC:
- Checks that contain an auxiliary on–us field in the magnetic ink character recognition (MICR) line are ineligible for conversion. Such checks can be readily identified because they are nine inches long, compared to the standard six inches for consumer checks.
- Checks valued at more than $25,000 are ineligible for conversion. In practice, virtually all such checks are business checks, and the dollar limit will ensure that checks sent to wholesale lockboxes are not converted.
- Checks drawn on home equity lines of credit are ineligible for conversion. In practice, these checks are nine inches long and contain an auxiliary on–us field.
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