What type of Check is an ARC Entry associated with?

What type of Check is an ARC Entry associated with?

• A. Personal Checks
• B. Business Checks
• C. Consumer Checks
• D. Certified Checks

Answer: (C)

An ARC (Accounts Receivable Check) entry is specifically related to consumer checks. This type of transaction typically occurs when a business uses an automated process to convert checks received from consumers into ACH debit entries. The focus is on consumer checks because they are personal payments made to a business for goods or services, often associated with the payment of bills or invoices. The processing of an ARC entry allows businesses to streamline their accounts receivable operations by converting physical checks into electronic transactions, which enables faster processing and reduced handling costs. This is particularly useful in consumer transactions where convenience and efficiency play significant roles in payment processing. In contrast, personal checks typically refer to individual payments made outside of a business context, business checks are issued by companies for operational purposes, and certified checks are guaranteed by a bank to have sufficient funds. These categories do not align with the specific use case of an ARC entry, which centers around consumer payments to businesses.

An ARC (Accounts Receivable Check) entry is specifically related to consumer checks. This type of transaction typically occurs when a business uses an automated process to convert checks received from consumers into ACH debit entries. The focus is on consumer checks because they are personal payments made to a business for goods or services, often associated with the payment of bills or invoices.

The processing of an ARC entry allows businesses to streamline their accounts receivable operations by converting physical checks into electronic transactions, which enables faster processing and reduced handling costs. This is particularly useful in consumer transactions where convenience and efficiency play significant roles in payment processing.

In contrast, personal checks typically refer to individual payments made outside of a business context, business checks are issued by companies for operational purposes, and certified checks are guaranteed by a bank to have sufficient funds. These categories do not align with the specific use case of an ARC entry, which centers around consumer payments to businesses.