Also called: BOC
What Back Office Conversion is
Back Office Conversion (BOC) lets your business accept an eligible paper check at a staffed location, then convert its information into an electronic debit through the ACH network during back-office processing. The customer hands over a check at checkout or a staffed bill-payment location, but the payment is processed electronically rather than deposited as a paper check.
BOC differs from a method that converts a check at the register. Staff collect the check first, and your back office or service provider handles the conversion afterward. Remote Deposit Capture is a broader term for depositing checks using images. BOC refers to the specific process of converting eligible checks accepted in person into ACH debits.
BOC changes how you process an in-person check, but customer notice and secure check handling remain your responsibility.
How BOC works
Your business must tell the customer about the conversion before accepting the check and provide a take-away notice or equivalent notice at the transaction. The notices need to explain that the check will be converted, that the customer’s financial institution will not return the original check, and how to contact customer service. They also need to explain the customer’s option to opt out. Proceeding after notice provides authorization under the described process.
Your business captures the check information, including its MICR data, and submits an ACH debit. Eligibility depends on the applicable rules and processing service. Current service documentation describes BOC for eligible consumer checks received at a point of sale or staffed payment location. Mailed checks, drop-box checks and checks from unstaffed locations are not eligible under that documentation.
What it means for your costs and cash flow
BOC does not have a standard merchant fee amount in the available fee information. Your costs depend on the processing service and any equipment, software, staff training, check storage or destruction procedures your business uses. Do not treat an old per-check cost comparison as a current price quote.
A 2008 report on one supermarket’s rollout put its ACH deposit cost at one cent per check, compared with four to five cents for a paper-check deposit. That is a single retailer’s historical operating example, not a current BOC rate or a promise of savings. BOC can also change how quickly you learn that a payment was returned. An ACH return means the payment is unpaid, so plan how staff will handle returned payments and follow up with the customer.
What to watch
Keep the original check for the required retention period. One service guide says converted checks are typically kept for at least 14 days before secure destruction. Never process both the original paper check and its electronic version. Protect the customer’s banking details and make sure check images are complete, legible and show the MICR line.
The customer’s bank statement shows the transaction as an electronic payment rather than a check payment. The available materials do not establish a standard BOC fee line or merchant-statement descriptor. Reconcile the ACH debit and any return against your payment records so you do not mistake a returned check conversion for collected funds.
What you can actually change
- Post both notices. Display the conversion notice where customers pay and provide a take-away notice. Include the electronic-conversion explanation, customer-service phone number, opt-out information and notice that the original check will not be returned.
- Set check controls. Train staff to identify eligible checks and honor an opt-out for that transaction. Store original checks securely, prevent duplicate processing and destroy converted checks after the required retention period.
- Track returns separately. Reconcile ACH debits and returned payments against your sales records. Treat a returned conversion as unpaid, then follow your documented process for contacting the customer and collecting the balance.
Frequently asked questions
Is Back Office Conversion the same as Remote Deposit Capture?
No. Remote Deposit Capture is a broader way to deposit checks using images. BOC specifically converts eligible checks accepted in person at a staffed location into ACH debits during later processing.
Does BOC cost less than depositing paper checks?
It can reduce some check-handling costs, but there is no standard BOC fee in the available pricing information. A 2008 supermarket report cited one cent for ACH deposits versus four to five cents for paper checks. Those historical figures are not a current rate or a general savings estimate.
What happens to the original check after BOC?
The customer’s bank processes an electronic payment, so the original check is not returned as a cancelled check. Your business must retain the check securely for the required period and then destroy it securely. One service guide describes a minimum retention period of typically 14 days.