Banks Responsible for much more than ACH Transactions

Question:

Our bank is looking into truncation of imaged items to ACH. We understand that NACHA rules prevent conversion of business checks to ACH but conversion of consumer checks is still not clear for banks. Why are we not able to convert these items?

Answer:

First off, there are six items found on an IRD you won't find on a check that allow them to be processed just like original checks:

It's what you can't see that could be a huge problem for your bank!When it comes to processing consumer checks to ACH, merchants have flexibility because of their relationship with the customer. Within this relationship, merchants get payment credit quicker and the customer also benefits by being able to dispute payment on the check within 60 days. Merchants don't necessarily need to have paper trails of checks from customers because the bank serves that function.

Vendor:

Source Technologies