What typically happens to a paper check when it is converted to an ACH electronic payment via ARC?

When a paper check is converted to an ACH electronic payment via the Automated Clearing House (ACH) process, the typical procedure involves destroying the paper check after it has been successfully converted. This is done to prevent duplication of payment, as the electronic version serves as a valid representation of the payment.

The process of converting a check to an ACH transaction generally entails scanning the check to gather necessary details like the account information and payment amount. Once this information is captured and the electronic payment is processed, the original paper check is no longer needed, hence the check is destroyed. This step ensures that the transaction can proceed smoothly without risking the possibility of duplicates arising from retaining the original check.

Other options such as storing the check for future reference or sending it back to the payee do not typically align with the ACH conversion process, as once the payment has been electronically processed, it is meant to streamline the transaction process and reduce physical paperwork. Storing checks in a digital archive may occur in some systems for auditing purposes, but it is not a standard outcome directly associated with the ACH conversion process itself.