How can I identify the real merchant behind a ARC charge?

Look for your check number in the description line next to 'ARC' (e.g., 'ARC CHK 1045'). Match the amount to bills you recently paid by mailing a handwritten paper check (such as property taxes, local water bills, or medical statements). Verify your checkbook register to ensure the check number matches your records.

What does ARC mean on a bank statement?

Q: What does ARC stand for on a bank statement?

ARC stands for Accounts Receivable Conversion. ARC occurs when a physical paper check you mailed in to pay a bill is converted into an electronic ACH debit upon arrival at the biller's lockbox.

Plain-English Definition

ARC stands for Accounts Receivable Conversion. ARC occurs when a physical paper check you mailed in to pay a bill is converted into an electronic ACH debit upon arrival at the biller's lockbox.

Important: What this code is NOT

ARC is not a double-charge or debit card transaction. When a check is converted to ARC, the physical paper check is destroyed or truncated by the biller and will not clear a second time as a physical check.

Understanding ARC (Accounts Receivable Conversion)

ARC (Accounts Receivable Conversion) represents the electronic conversion of a consumer paper check received via U.S. mail or dropped in a bill payment drop-box.

Instead of physically sending your paper check through the Federal Reserve check clearing system, the billing company scans the MICR routing and account line and processes it as an instant electronic ACH debit.

Nacha rules require billers to provide clear advance notice on billing statements that mailed checks may be converted into electronic ACH transactions.

How to Locate the Actual Merchant

Because ARC specifies the underlying payment rail or transaction type, you must examine the accompanying text on your statement to identify where you actually shopped or paid:

Step 1 Look for your check number in the description line next to 'ARC' (e.g., 'ARC CHK 1045').
Step 2 Match the amount to bills you recently paid by mailing a handwritten paper check (such as property taxes, local water bills, or medical statements).
Step 3 Verify your checkbook register to ensure the check number matches your records.

Common Statement Line Formats

Financial institutions typically format ARC entries like this:

STATE FARM INS ARC CHK# 1024
COUNTY TAX COLLECTOR ARC 504
WATER DEPT LOCKBOX ARC 892
ARC CHECK CONVERSION 1102

Verified Primary Sources

Every technical definition on this page is checked against official banking and regulatory rules:

Nacha: Accounts Receivable Conversion (ARC) Rules https://achdevguide.nacha.org/ach-file-details
Federal Reserve: Electronic Check Conversion Information for Consumers https://www.federalreserve.gov/paymentsystems/regii-about.htm