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#128386 - 11/04/03 07:59 PM Electronic Check Conversion
Ginlyn, CRCM Offline
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Ginlyn, CRCM
Joined: Nov 2003
Posts: 300
Oklahoma
Thanks, John. We spoke with a NACHA representative who was no help at all and didn't even hint that there was a rule regarding no electronic check conversions except for personal checks. I appreciate the information
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Ginger M CRCM

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eBanking / Technology
#128387 - 11/05/03 03:10 PM Re: Electronic Check Conversion
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I urge you to obtain a copy of the NACHA rules. Here's the applicable section (the Originator is the Merchant or Lockbox operator; the Receiver is the drawer of the check):

Quote:

SUBSECTION 2.9.1 Source Documents

For an ARC entry, a check or sharedraft provided to the Originator by the Receiver via the U.S. mail or at a dropbox location must be used by the Originator as the source document for the Receiver's routing number, account number, check serial number, and dollar amount. To be used as the source document for an ARC entry, a check or sharedraft must (1) contain a pre-printed serial number, (2) be drawn on a Consumer Account, and (3) be completed and signed by the Receiver.

The following may not be used as the source document for ARC entries: (1) checks drawn on corporate or business accounts, (2) third-party checks, (3) demand drafts and third-party drafts that do not contain the signature of the Receiver, (4) credit card checks, (5) obligations of a financial institution (e.g., travelers checks, cashier's checks, official checks, money orders, etc.), (6) checks drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank, (7) checks drawn on a state or local government, or (8) checks payable in a medium other than United States currency.





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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#128388 - 11/05/03 09:26 PM Re: Electronic Check Conversion
Ginlyn, CRCM Offline
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Ginlyn, CRCM
Joined: Nov 2003
Posts: 300
Oklahoma
Thanks again, John. I have distributed your information to the appropriate individuals. I've even had several volunteers to heed your earlier advice to "pitch a bitch" at the ACH operator.
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Ginger M CRCM

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