What method does an Originator use to initiate an ARC Entry when Checks are received?

What method does an Originator use to initiate an ARC Entry when Checks are received?

• A. Electronic transfer
• B. Bank deposit
• C. Mail processing
• D. Physical Check acceptance

Answer: (C)

The method an Originator uses to initiate an ARC (Accounts Receivable Conversion) entry when checks are received is through mail processing. In the context of the ACH network, ARC is a specific type of entry created from a consumer’s check, allowing it to be converted into an electronic payment. When checks are received by the Originator, they go through mail processing to facilitate the conversion into an ACH entry. This process involves scanning or capturing the details from the check, which then allows the Originator to create an electronic transaction that can be processed through the ACH system. This method is efficient as it helps in reducing the handling of physical checks and speeds up the payment process by converting paper checks into electronic funds. The other methods listed, such as electronic transfer or bank deposits, are not applicable in the context of ARC entries as these do not directly involve processing a physical check received by mail. Physical check acceptance pertains to just receiving the check rather than the necessary steps taken to convert it to an electronic payment. Thus, mail processing is the correct method for initiating an ARC entry with checks.

The method an Originator uses to initiate an ARC (Accounts Receivable Conversion) entry when checks are received is through mail processing. In the context of the ACH network, ARC is a specific type of entry created from a consumer’s check, allowing it to be converted into an electronic payment.

When checks are received by the Originator, they go through mail processing to facilitate the conversion into an ACH entry. This process involves scanning or capturing the details from the check, which then allows the Originator to create an electronic transaction that can be processed through the ACH system. This method is efficient as it helps in reducing the handling of physical checks and speeds up the payment process by converting paper checks into electronic funds.

The other methods listed, such as electronic transfer or bank deposits, are not applicable in the context of ARC entries as these do not directly involve processing a physical check received by mail. Physical check acceptance pertains to just receiving the check rather than the necessary steps taken to convert it to an electronic payment. Thus, mail processing is the correct method for initiating an ARC entry with checks.