How is an ARC Entry initiated?

How is an ARC Entry initiated?

• A. Through online payment
• B. By telephone confirmation
• C. By converting Checks received via US Mail
• D. Via mobile app scanning

Answer: (C)

An ARC (Accounts Receivable Conversion) entry is specifically initiated by converting checks that are received via U.S. Mail into ACH transactions. This process allows businesses to streamline their collections by taking checks, which are physically received, and converting them into electronic payment forms. The business processes the paper check and generates an ACH debit to the payer’s account, making the funds available more quickly compared to traditional check processing. This method is beneficial because it reduces the need for manual check handling and expedites funds availability. The other options mentioned, while relevant in different payment contexts, do not pertain to the specific mechanism of initiating an ARC entry. Online payments, telephone confirmations, and mobile app scanning are methods for initiating different kinds of electronic transactions but do not involve the direct conversion of paper checks into ACH entries, which is the hallmark of the ARC process.

An ARC (Accounts Receivable Conversion) entry is specifically initiated by converting checks that are received via U.S. Mail into ACH transactions. This process allows businesses to streamline their collections by taking checks, which are physically received, and converting them into electronic payment forms. The business processes the paper check and generates an ACH debit to the payer’s account, making the funds available more quickly compared to traditional check processing.

This method is beneficial because it reduces the need for manual check handling and expedites funds availability. The other options mentioned, while relevant in different payment contexts, do not pertain to the specific mechanism of initiating an ARC entry. Online payments, telephone confirmations, and mobile app scanning are methods for initiating different kinds of electronic transactions but do not involve the direct conversion of paper checks into ACH entries, which is the hallmark of the ARC process.