Accounts receivable conversion (a.k.a., check conversion) is the conversion of a paper check to
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Accounts receivable conversion, also known as check conversion, is a process where paper checks are converted into electronic payments. This process involves the use of an Automated Clearing House (ACH) system to transfer funds electronically between bank accounts.
The process of accounts receivable conversion involves several steps. First, the payee (the person receiving the payment) receives the paper check. Then, they use a scanner or other electronic device to capture an image of the check. This image is used to create an electronic payment that is sent to the payee's bank through the ACH system.
The ACH system then processes the payment, debiting the payer's account and crediting the payee's account. The funds are typically available to the payee within one to two business days.
There are several benefits to using accounts receivable conversion. It can reduce the risk of fraud and errors associated with paper checks, as well as speed up the payment process. Additionally, it can reduce the costs associated with paper-based payments, such as printing and postage.
In summary, accounts receivable conversion is the process of converting a paper check into an electronic payment through the use of the ACH system. This process can help reduce costs and improve the efficiency and security of payment transactions.