The Accounts Receivable (ARC) Entry application became effective on March 15, 2002, and allows checks delivered to remittance and lockbox locations to be converted into automated clearing house (ACH) debits. NACHA statistics show that in the first quarter 2004, the number of ARC payments increased by 92.7 percent over the previous quarter, and 650 percent over a year ago. ARC is used almost entirely for consumer bill payments such as credit cards, mortgages, insurance, and telecommunications. The new rule will likely have little practical effect. A recent 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 enabled by the Check Clearing for the 21st Century Act.
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