What happens to a check in an ARC after it is converted to an ACH electronic payment?

When a check is converted to an ACH (Automated Clearing House) electronic payment through the ARC (Accounts Receivable Conversion) process, it undergoes a transformation where the original physical check is typically no longer needed for processing. The check is often destroyed to prevent any risk of it being processed as another physical transaction, ensuring that there is only one payment record for that transaction.

In the ARC process, while the information from the check is retained in a digital format for processing with the ACH network, the original physical check is obsolete at that point. This destruction helps prevent errors or fraud that could arise from having both a physical check and a duplicate electronic payment in the system. As a result, the destruction of the physical check is a standard practice following its conversion to an electronic payment.