LEWISTON, Maine- LAWFUEL – Business + Law Network –FISC’s President and CEO Carol Sabasteanski announced Accounts Receivable Conversion (ARC) last week as a new service opportunity that allows their remittance (lockbox) clients to capitalize on the fast-paced and ever changing payments industry. ARC provides FISC clients a chance to save on costs in an industry that has evolved to include both paper and electronic forms of payments.
ARC is the process of converting a consumer check that is dropped off at a drop box or sent to a lockbox to an electronic Automated Clearing House (ACH) debit. By converting a check into an ACH debit, a customer will no longer see the returned check in the monthly statement. Instead, the customer will see an electronic withdrawal from the biller.
All ARC transactions are settled the next day, creating several benefits for the biller. These benefits include improved float time, reduced clearing fees and a reduction in returns.
Any company that receives a large number of consumer payments each month may find it cost effective to use ARC on received payments. The biller is required to notify its customers of the new process, as well as offer them an “opt-out” option. The “opt-out” feature allows customers who do not want their checks converted to avoid it by contacting the biller and discussing other options.
Even though customers will no longer receive their checks in their statements, billers are still required to keep a copy of the original check for two years. As a result, the biller is still able to fulfill a request in the instance a customer would like a copy of a check.
In October of 2006, FISC began providing ARC to two clients. “We are now prepared to offer this service to the remainder of our remittance clients,” Sabasteanski said. “FISC has created a detailed business case analysis that we are happy to complete to determine how much money and organization can save with ARC.”
For 30 years, FISC has provided services and solutions to financial institutions. In October, 2006 FISC expanded the company to include a new location in Portsmouth, N.H. The company designs and implements full-service outsourcing solutions that make the operations of financial, insurance, government, not-for-profit, and other organizations more efficient and affordable. FISC’s core services include item processing and imaging, loan servicing, statement and invoice printing, and lockbox. For more information, visit www.fiscsolutions.com, e-mail [email protected] or call 1.888.433.4924, ext. 2111.