The provision becomes effective on June 11, 2004. The new rule will likely have little practical effect. A NACHA survey found that 93 percent of companies that originate ARC payments already provide the ability to opt-out. In many cases, less than 1 percent of consumers are electing to opt-out. Consumers who opt-out of check conversion may still experience electronic check processing. Beginning on October 28, 2004, all checks become eligible to be processed electronically under the framework established by the Check Clearing for the 21st Century Act. The ARC application became effective on March 15, 2002, and allows checks delivered to remittance and lockbox locations to be converted into ACH debits. NACHA estimates that in 2003, there were 220 million ARC payments, including on-us payments. ARC is used almost entirely for consumer bill payments such as credit cards, mortgages, insurance, and telecommunications.
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