What does back-office conversion (BOC) allow retailers to do?

Back-office conversion (BOC) is a process that allows retailers to convert paper checks received from customers into electronic transactions for easier processing. This happens after the checks have been deposited, generally in the back office rather than at the point of sale. By digitizing these checks, retailers can speed up the clearing process and reduce the costs associated with handling paper checks.

The ability to convert checks into electronic means for clearing is advantageous for retailers, as it streamlines operations and improves cash flow management. This process does not require the customer to be present for the check conversion, hence the conversion occurs behind the scenes, which is why it is called back-office conversion.

This method differs significantly from other options, such as converting checks only at the point of sale, which is not permitted under BOC rules, or processing credit card transactions without approval, which goes against protocol and involves risk management policies. Additionally, the acceptance of cash only would contradict the essence of BOC, which revolves around handling check transactions electronically. BOC provides a modern solution to simplify the handling of checks in retail environments, highlighting its significance in contemporary payment processing systems.