What does check conversion allow banks to do?

Check conversion allows banks to change paper checks into electronic format. This process involves scanning the physical check and creating an electronic image, which is then used to initiate the payment process electronically. This transformation facilitates faster processing and settlement compared to traditional paper checks, streamlining transactions for both the bank and the customer.

The importance of this method lies in its ability to enhance efficiency and reduce the risks associated with handling physical checks, such as delays in processing and potential losses or theft. By converting checks to an electronic format, banks can process these transactions more quickly while maintaining a secure record of the payments, ultimately benefiting both businesses and consumers in their banking experiences.