Article: Check 21 and ARC: Convergence or Divergence in Payments.

As Check 21 Act goes into effect this year, the main question is whether it will replace accounts receivables conversion (ARC) in the payment stream. The two processes have been discussed as if they are similar, competitive payment processes, and there are misconceptions that they deliver the same benefits. What is more likely is that Check 21 and ARC will thrive operating as complementary payment options.

The ultimate goal for Check 21 is check truncation. The law removes the requirement that banks process and route the original check by allowing for a "substitute check" as the equivalent. The new law does not replace a paper check with a purely electronic one, ...

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