Single Entry debits originated based on an Eligible Source Document provided to an Originator by a Receiver at the point-of-purchase or manned bill payment location for subsequent conversion during back-office processing.
The Company is required to verify the identity of the Receiver prior to originating a BOC entry.
The Company must provide notice to the check writer, prior to accepting the check at the point of purchase or at a manned bill payment location, that:
The check may be converted and collected electronically; and
Receipt of their check will be authorization for the check to be used as a source document for an ACH debit entry to their account.
A copy of the notice must be provided to the check writer prior to the initiation of each BOC entry.
The notice must be clear and readily understandable, and must be provided in a prominent and conspicuous manner.
Notices must include a working customer service telephone number for customer inquiries, which is answered during normal business hours.
A copy of the front of the source document must be made available upon request for two (2) years from the Settlement Date of the transaction.
Source Document Eligibility Requirements
The Company may accept a check as a source document for BOC if it meets the following criteria:
It was presented as payment at the point of sale or at a manned bill payment location;
It contains a pre-printed check serial number;
It is in an amount of $25,000 or less;
It is completed and signed by the check writer;
The routing number, account number, and check serial number are encoded in magnetic ink;
It is payable in U.S. currency only; and
It is a consumer check, or small sized business check, that does not contain an Auxiliary On-Us Field in the MICR line (large format business checks).
Checks that do not meet all eligibility requirements;
Checks payable to a person other than the Originator;
Check that accesses credit card account, home equity line, or other form of credit;
Check drawn on an investment account;
Check that is an obligation of a Financial Institution (e.g. Cashier’s check, Travelers Check, Money Order, Official Check);
Checks drawn on the Treasury of the United States, a Federal Reserve Bank, or a Federal Home Loan Bank; and
Checks drawn on a state or local government that are not payable through or at a Participating DFI.
Retailer Telephone Number
Company must establish and maintain a working telephone number for Receiver questions or inquiries regarding BOC entries.
The person answering the telephone number must be capable of supporting and responding to questions about specific BOC entries to a Receiver’s account.
Responsibilities of Originators
As an Originator initiating BOC (Back Office Conversion) entries, it is imperative to adhere to specific responsibilities to ensure compliance with the rules and regulations governing these transactions. Your responsibilities include:
Verify Receiver's Identity: Before processing BOC entries, verify the identity of the Receiver to ensure the legitimacy of the transaction.
Maintain Working Telephone Number: Maintain a working telephone number that is answered during normal business hours. This number should be readily available for inquiries related to BOC entries.
Display Telephone Number on Notice: Ensure that the telephone number is prominently displayed on the notice provided to the Receiver. This allows the Receiver to contact you for inquiries or concerns during regular business hours.
Accurate Entry Details: Verify that the BOC entry's details, including the amount, routing number, account number, and Check Serial Number, accurately represent the information on the Eligible Source Document.
No Eligible Source Document Presentation: Do not present the Eligible Source Document used to initiate the BOC Entry for payment. The BOC Entry effectively replaces the paper check in the transaction process.
Retention of Eligible Source Document: Retain a reproducible and legible copy of the front of the Eligible Source Document used to initiate each BOC Entry for a minimum of two years from the Settlement Date of the Entry.
Provide Eligible Source Document Upon Request: Be prepared to provide the Eligible Source Document upon request.
Secure Storage Practices: Implement commercially reasonable methods to securely store both the Eligible Source Document and all banking information related to the BOC Entry. This includes safeguarding sensitive information and adhering to data security standards.
Prompt Response to RDFI Requests: When the RDFI (Receiving Depository Financial Institution) submits a written request for a copy of the front of the Eligible Source Document, provide a clear copy within ten Banking Days of receiving the request. This must be done if the request is received within two years of the Settlement Date of the BOC Entry.
Sample BOC Notification Language
When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. For inquiries please call <RETAILER PHONE NUMBER>.