M&T Bank : Converting Checks To ACH
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Converting Checks to ACH Payments

With M&T's Remote Check Deposit, you have the ability to authorize M&T to convert eligible personal checks to ACH (Automated Clearing House) debits. There are two options available for check conversion, Accounts Receivable Entry (ARC) and Back Office Conversion (BOC).

ARC
This Standard Entry Class Code enables originators to convert to a Single-Entry ACH debit an eligible check received via the U.S. mail or at a dropbox location for the payment of goods or services.

BOC
This Standard Entry Class Code enables originators, during back office processing, to convert to a Single-Entry ACH debit an eligible check received at the point of purchase or manned bill payment location for the in-person purchase of goods or services.

Because you will be considered to be the originator of any checks converted to ACH entries, your business will need to remain in compliance with NACHA (The Electronic Payments Association) rules, as outlined below.

Notification
Whether your transactions are processed as ARC or BOC, you will be required to provide your consumers with specific notification explaining that their checks may be converted to ACH transactions.

Notification for Accounts Receivable Entries (ARC) 
Prior to the receipt of payment, you will need to provide the consumer with notice (in a clear and conspicuous manner) that includes the following, or substantially similar, language:

"When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction."

Until January 1, 2010, the notice must also include the following, or substantially similar, additional language:

"When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution."

Notification for Back Office Conversion Entries (BOC)
The following language, or substantially similar verbiage, must be posted in a prominent and conspicuous location as well as given to the consumer at the time of the transaction:

"When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. For inquiries, please call ."

Until January 1, 2010, the posted notice must also include the following, or substantially similar, additional language:

"When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day you make your payment, and you will not receive your check back from your financial institution."

Sample signage and documentation providing notification can be found at NACHA's website.

Accounts Receivable Entries (ARC)
You have the ability to maintain a customer Opt Out list within the Remote Check Deposit system. Checks drawn on any customer account entered into the Remote Check Deposit Opt Out list will not be converted into ACH transactions.

Back Office Conversion Entries (BOC)
While you are able to utilize the Opt Out list in Remote Check Deposit, you also have the ability to request a different form of payment from the customer.

ACH Check Conversion: Customer Kit
This Customer Kit provides an overview of check conversion and will assist you in preparing to use Remote Check Deposits ACH feature.

Complete ACH Rules
Please be aware the information provided does not include a complete set of ACH rules. For additional information regarding compliance and a complete set of rules, please refer to NACHA rules for ACH origination. You can reach NACHA at the following website: www.nacha.org.

 
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