UnknownCharges

Electronic Check Conversion

What does ARC mean on a bank statement?

ARC

· Evidence review pending · Content revised

08/05 STATE FARM INS ARC CHK# 1024 $45.20

Illustrative entry. The example date and amount do not establish your bank’s format or a real transaction.

Plain-English Definition

Registry label for ARC: Accounts Receivable Conversion. Unreviewed registry note: 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

Unreviewed registry note: 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)

Unreviewed registry note: 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.

Unreviewed registry note: 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.

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

Find the transaction details

Read the complete entry and its direction before looking for a company. A code may describe a deposit, payment type or status; it does not necessarily identify a purchase:

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

Example statement lines

These are lookup illustrations. Bank layouts vary, and an example does not establish a particular originator or authorization:

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

Questions about ARC

What does ARC stand for on a bank statement?

Registry label for ARC: Accounts Receivable Conversion. Unreviewed registry note: 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.

Is ARC the name of a company?

Unreviewed registry note: 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.

How can I find the originator or merchant for a ARC entry?

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

Source references

These references accompany this entry. A claim-level evidence review is pending; a citation alone does not verify every statement.