Back Office Conversion (BOC)

Back Office Conversion, or BOC, is a process used by merchants to convert paper checks into electronic payments in the merchant's back office, rather than at the point of sale. This conversion allows businesses to process checks more efficiently by digitizing them into electronic transactions that can be processed through the Automated Clearing House (ACH) network.

For BOC to be implemented, consumers must be clearly notified about the electronic processing of their checks. This notification typically occurs through signage at the point of sale or other check receiving locations, informing customers that their written checks will be converted to digital formats. Once converted, the digital data is used to initiate an electronic fund transfer, speeding up the payment process and reducing the handling and processing costs associated with physical checks.

This method not only streamlines the handling of payments for merchants but also enhances the security and tracking of transactions. BOC is particularly useful for businesses that handle a large volume of checks, as it minimizes manual entry errors and improves overall transaction efficiency.