Financial institution clients to benefit from new NACHA rules for BOC and ARC
Open Solutions announced it has extended its remote deposit capture services to include back office conversion (BOC) and accounts receivable conversion (ARC). Open Solutions is a leading provider of integrated enabling technologies for financial institutions in the United States, Canada and other international markets.
New BOC operating rules issued by the National Automated Clearing House Association (NACHA) and the Electronic Payments Association become effective on March 16, allowing merchants and businesses to convert eligible checks to ACH transactions during back office processing rather than at the point of purchase. Similarly, mailed payments received by merchants can be converted to the ARC format and transmitted as an ACH file to their financial institution for processing.
“As the newest forms of check conversion, BOC and ARC will significantly benefit financial institutions, retail merchants and billers by virtually eliminating geographic boundaries and streamlining electronic check deposits into a single process,” said Marcell King, vice president and co-general manager of Open Solutions Imaged Payment Technologies Group. “Open Solutions is prepared for the BOC rule changes. Our financial institution clients will reap the benefits of faster funds availability, better commercial business services, reduced check processing costs and more accounting controls.”
Designed to provide the “best clear option,” BOC functionality allows business customers to choose from a Check 21 format or ACH format. To minimize exceptions, Open Solutions’ remote deposit capture solution automatically detects ineligible ACH items and converts them into Check 21 format. Open Solutions’ financial institution clients have already begun beta testing the new BOC and ARC functionality with their customers.
According to NACHA estimates, as many as 3.2 billion checks were converted into ACH payments in 2006 representing an increase of 36 percent over 2005. The existing form of check conversion in use at many retail locations grew by an estimated 60 percent in 2006.
About Open Solutions Inc.
Open Solutions Inc. offers a fully featured strategic product platform that integrates core data processing applications built on a single centralized Oracle relational database, with Internet banking, cash management, CRM/business intelligence, financial accounting tools, imaging, digital documents, Check 21, interactive voice response, network services, Web hosting and design, payments and loan origination solutions. Open Solutions’ full suite of products and services allows banks, thrifts, credit unions and financial services providers in the United States, Canada and internationally to better compete in today’s aggressive financial services marketplace, and expand and tap their trusted financial relationships, client affinity, community presence and personalized service.
For more information about Open Solutions or its financial product line, contact Mickey Goldwasser by email at mgoldwasser@opensolutions.com by phone at 860.652.3153 or via fax at 860.652.3156. Visit Open Solutions’ Internet site at www.opensolutions.com.