Paper Check Conversion Over the Counter (PCC O.T.C.- known in private industry as"e Check") converts paper checks received over the counter or through the mail into electronic debits to the check writer's account. (See the Federal Reserve Board of Governor's F.A.Q.s on Electronic Check Conversion) The PCC OTC process is a highly automated multi-redundant system that greatly improves the collection, reconciliation, research and reporting processes associated with Federal Agency check collections.
A check is converted into an electronic transaction when the check imager reads the bank account (M.I.C.R.) information from the bottom of the check and stores an electronic image of the check. The bank account information is then compared against a database to verify the account is in good standing. The consumer walks away from the transaction with the voided check as a receipt.
By presenting his/her completed, signed check to the cashier, the consumer authorizes the conversion of his/her check into an electronic debit in the amount of the check. A "Notice to Customers Presenting Personal Checks," containing this authorization language is posted at the Point-of-Sale.
The true value of Paper Check Conversion Over the Counter (PCC O.T.C.) is realized by a combination of factors that allow funds and information to be processed in a streamlined manner, which greatly reduces indirect costs, while increasing accountability and security.
Generally, PCC O.T.C. will:
- Reduce the workload
by removing paper from the process
- Improve returns processing
- Improve exception handling
- Speed the deposit and collection process through automation
- Automate the preparation of Deposit Tickets and Debit Vouchers (SF 215 & SF 5515)
- Resubmit failed items multiple times
- Reduce the number of dishonored checks accepted
- Provide a complete electronic record of converted checks
- Provide an audit trail for each item
- Allow enhanced reporting and access to information
- Facilitate access to stored items
- Enhance reporting