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ISO Corner: BOC, POP On A Roll |
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It’s no secret that check usage at the retail point-of-sale will continue to decline, accounting for just 4 percent of transactions in 2010, according to most estimates. Yet two methods of converting paper checks into electronic ACH transactions—point-of-purchase conversion, or POP, and back-office conversion, known as BOC—continue to attract attention, with some retailers and experts seeing greater potential for the former, and others for the latter.
POP, introduced in 1999 by Herndon, Virginia-based NACHA-The Electronic Payments Association, requires paper checks to be converted right at the checkout counter, then immediately handed back to customers. By contrast, BOC, which NACHA launched in March of 2007, permits paper checks to be collected at the point-of-sale and converted later. Retailers practicing BOC need a single image scanner for each store and can settle documents not eligible for ACH conversion as digital check images, image-replacement documents, or paper checks.
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