Wells Fargo & Co. is integrating its automated clearing house processing system with its account reconciliation system to let business customers track checks that have been converted to ACH transactions.
The San Francisco company said Tuesday that the integration is a response to a rule change that will take effect Friday.
Nacha, the electronic payments association, amended its rules in November to let institutions use its accounts receivable conversion format to convert at the lockbox consumer-size business checks that are worth less than $25,000 and lack the "auxiliary on-us" field in the magnetic ink character recognition line.
"We understand that treasurers making business payments want to ensure that their payees get paid and expect all payments to post and reconcile properly, regardless of whether the payments arrive in paper or electronic form," Kris Chester, a senior vice president in Wells' wholesale Internet and treasury solutions unit, said in a press release.
Wells said its integrated system will allow users of its ACH Fraud Filter software to stop debits if an ineligible business check is converted, or to permit the payment to post. Positive pay customers will be able to make a pay or return decision for exception items.
Other banking companies, including National City Corp., KeyCorp, and Comerica Inc., have also enhanced their accounting systems to keep track of payments that change to electronic form from paper.
