Definition of Check conversion:
Check conversion is a reformatting service offered by banking merchants. Check conversion allows banks to convert paper checks into electronic ones and then send them to the appropriate receiving bank. The electronic check is forwarded via the automated clearing house (ACH).
Check conversion is performed using a check reader that captures account information from a paper check. The account holder may or may not fill out the check before submitting it to be converted. The paper check is used as a source of information to conduct the transaction – namely, the account number, the routing number, and the check number. The check number will appear on the account holder’s statement to identify the transaction. Because check conversion uses the check number to identify the transaction, each converted check can only be used once, even if it’s not filled out.
A check payment method whereby a paper check is submitted to the payee, but the funds are withdrawn electronically.
Meaning of Check conversion & Check conversion Definition