- Accounts Receivable Conversion - ARC
- A process that allows paper checks received in payment for an account receivable to be electronically scanned and converted into an electronic payment through the Automated Clearing House. ARC saves time and the expense of actually processing the check. Both the vendor and the bank on which the payment was drawn receive only an electronic image of the check.
As the financial industry becomes increasingly computerized, ARC has become the norm rather than the exception for large payment processors. Prior to ARC and electronic payments, the most common method of payment was lockbox banking, in which payments are made to a post office box serviced by a bank.
ARC speeds the payment to the vendor, who otherwise would have to wait for an actualy check to be transported and processed.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Accounts payable — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Check Conversion — A reformatting service offered by banking merchants. Check conversion allows banks to convert paper checks into electronic ones and then send them to the appropriate receiving bank. The electronic check is forwarded on via the automated clearing… … Investment dictionary
Cash Conversion Cycle - CCC — A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of time each net input dollar is tied up in the production and… … Investment dictionary
working capital conversion cycle — An accounting and financial phrase used to describe the dynamics of short term cash flows that occur during the normal operations of a business. The working capital conversion cycle is the circular process of borrowing money first to purchase… … Financial and business terms
Cash conversion cycle — The length of time between a firm s purchase of inventory and the receipt of cash from accounts receivable. The New York Times Financial Glossary … Financial and business terms
cash conversion cycle — The length of time between a firm s purchase of inventory and the receipt of cash from accounts receivable. Bloomberg Financial Dictionary … Financial and business terms
business finance — Raising and managing of funds by business organizations. Such activities are usually the concern of senior managers, who must use financial forecasting to develop a long term plan for the firm. Shorter term budgets are then devised to meet the… … Universalium
Factoring (finance) — This article is about finance. For other uses, see Factor (disambiguation). Corporate finance … Wikipedia
Working capital — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
The InterProse Corporation — Infobox company company name = The InterProse Corporation company CC BY SA company type = Private foundation = 1996, incorporated 1997 location city = Vancouver, Washington location country = USA slogan = People Knowledge Technology key people =… … Wikipedia
Financial ratio — Corporate finance … Wikipedia