Check Processing Policy

  • On July 1, 2016, Weld County School District 6 (WCSD6) will implement a new accounting process when processing checks. In an effort to increase efficiency and reduce costs, WCSD6 will begin to convert checks into Automated Clearing House (ACH) or electronic transactions. This new service will be used for all checks received by the District. 

     

    Checks are converted into an instantaneous electronic transaction, similar to that of a debit card transaction. 

     

    Checks are processed through image exchange or as a substitute (electronic) check. This method "delivers" images of the front and back of a check to corresponding banks for processing. 

     

    Important: When a check is provided as payment, the individual/organization authorizes WCSD6 to use information from their check to make a one-time electronic fund transfer from their account or to process the payment as a check transaction. 

     

    The new procedure includes all checks received by the school district and neighborhood schools. 

     

    Note: This only pertains to schools/sites that are using a Panini check scanner for remote deposit capture. As of July 1, 2016, high schools are the only units utilizing these machines. 

    FAQs

    Why is the District adopting the new system?

    • Accelerated availability of funds and reduced processing costs. 
    • More efficient processing due to ACH conversion, including an additional re-deposit option for all returned items. 
    • Electronic processing reduces the time and resources needed to process payments. The results are lower costs, fewer errors, less labor, less paper, and less impact on the environment. 

    What happens when a check is converted to an electronic transaction?

    • Information on the check is used to convert the check to an electronic transaction based on that information. Electronic transactions are more efficiently processed than paper checks, and that helps keep costs low and reduces the impact on the environment. 

    Why isn't the check listed on the bank statement? 

    • Because the payment is processed as an electronic transaction, it may be listed in the section of the bank statement with other electronic debits. The description of the electronic debit includes information to help easily identify the payment. Because converted items are electronic debits, a bank statement may list the payee and a transaction description.

    Can the original check be returned to the remitter?

    • No. For protection, the original check is destroyed. The original check is presented for payment only once, through an ACH debit. 

    Does this mean that the remitter's bank account is debited each month, and additional checks don't have to be written to pay future bills?

    • No. This is not recurring debit program. A check is needed to initiate each payment. The timing of payment is controlled by writing a check. 

    What authority allows the District to convert a check?

    • Pursuant to regulatory rules (NACHA and Regulation E), the District is properly notifying remitters of their intention to clear checks electronically. 

    Can a stop payment be placed on a converted check? 

    Yes. As with any stop payment, however, a stop payment should be placed with financial institution as quickly as possible. 

     

    Please note: If a check has been returned for non-payment and has not cleared after 2 submissions, it will be sent immediately to PFC (Professional Finance Company) for collection.