The Check Exception List includes information about check items that should receive special handling. The four types of exceptions that you can create are as follows:
ARC Opt-Out - Allows you to provide a mechanism for your customers to opt-out of ARC check conversion. If a check drawn on a designated opt-out account is scanned, an error message will be returned and the transaction will not be permitted.
Ineligible - Allows you to enter R/T and account information for scanned checks that cannot clear with the check's MICR information or are returned because of ineligibility, i.e., credit card checks. Checks in the Ineligible database will return an error message in ARC, BOC, POP, and RCK applications.
Stop Check - Allows you to enter R/T and account information for scanned checks to reject an account. Checks in the Stop Check database will be automatically rejected, returning an error message and instructions to cancel the transaction; this is applicable for all categories with check scanning.
Auto Conversion - Allows you to convert R/T and/or account information when a designated check is scanned to facilitate clearing via ACH. As an example, some credit unions utilize ”pay-through” banks for paper checks but receive ACH transactions directly. Usually, the MICR line from a paper check of a pay-through bank will not clear via the ACH network. If the routing number is converted, or if a processing code in the account number is removed, these paper checks can be converted to ACH and clear via the network. Auto conversion is applicable for ARC, Smart Scan ARC and/or BOC, BOC, POP, and RCK applications. The original scanned/saved R/T number and account number of an auto conversion transaction will be placed in the Notes section of the transaction for later reference.