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The Department of Labor's Wage and Hour Division (WHD) is transitioning
from a bank lockbox system to a Paper Check Conversion (PCC) process in
handling all back wage checks submitted to WHD.
PCC converts paper checks into electronic debits to a check writer's account.
Since the PCC process is automated, the collections and reporting process
is more efficient. In other words PCC converts paper checks into electronic
funds debit transactions.
Electronic fund transfer (EFT) is the term used
to refer to the process in which we electronically instruct your financial
institution to transfer funds from your account to the WHD account, rather
than processing your check.
If you are presenting a check in person to a district WHD office, your
check will be converted into an electronic fund transfer. When you hand
your completed, signed check to WHD, your check will be copied. The account
information from your check will be used to make an electronic fund transfer
from your account in the amount of the check. WHD will void the check and
destroy it. We will keep a scanned image copy of the check for recordkeeping
purposes.
If you mail us your check to make your payment, your check will be converted
into an EFT. By sending your completed, signed check to us, you authorize
us to copy your check and to use the account information from your check
to make an electronic fund transfer from your account for the same amount
as the check.
The electronic fund transfer from your account will usually occur
within 24 hours, which is faster than a check is normally processed. Therefore, make sure there are sufficient funds available in your checking
account when you send us your check.
If the EFT cannot be completed because
of insufficient funds, we may try to make the transfer an additional time.
The electronic fund transfer from your account will be on the account statement
you receive from your financial institution.
Please note that the transfer may be
in a different place on your statement than the place where your checks normally appear.
For example, it may appear under "other withdrawals"
or "other transactions." You will not receive your original check
back from your financial institution. For security reasons we will destroy
your original check, but we will keep a scanned image copy of the check
for recordkeeping purposes.
You should contact your financial institution immediately if you believe
that the electronic fund transfer reported on your account statement was
not properly authorized or is otherwise incorrect. Consumers have protections
under a Federal law called the Electronic Fund Transfer Act for an unauthorized
or incorrect electronic fund transfer.
Paper Check Conversion - Frequently Asked Questions (FAQs)
What is point-of-purchase check conversion?
Point-of-purchase check conversion is the process of converting checks that
customers present to cashiers into electronic fund transfers. "Electronic
fund transfer" is the term used to refer to the process in which we
electronically instruct your financial institution to transfer funds from
your account to our account, rather than processing your check. When you
hand a check to the cashier, your check is copied and the account information
from your check is used to make an electronic fund transfer from your account.
The cashier can void your check and return it to you.
This WHD web notice
authorizes the conversion of your check into an electronic fund transfer in this manner.
How quickly will funds be transferred from my account?
The electronic fund transfer from your account will usually occur within
24 hours upon receipt of your check, which is faster than a check is normally
processed. Therefore, you should be sure that there are sufficient funds
available in your checking account when you present or mail your check.
If the electronic fund transfer cannot be completed because there are insufficient
funds in your account, we may represent the check up to two more times.
Will the electronic fund transfer appear on my account statement?
The electronic fund transfer from your account will be on the account statement
that you receive from your financial institution. However, the transfer
may be in a different place on your statement than the place where your
checks normally appear. For example, it may appear under "other withdrawals"
or "other transactions."
What if there is a problem with the electronic fund transfer?
You should contact your financial institution immediately if you believe
that the electronic fund transfer reported on your account statement was
not properly authorized or is otherwise incorrect. Customers have protections
under a Federal law called the Electronic Fund Transfer Act for an unauthorized
or incorrect electronic fund transfer.
What if the electronic fund transfer cannot be processed?
In rare instances, an electronic fund transfer cannot be processed for reasons
other than insufficient funds. In these cases, we will process the copy
of your original check. Different rights apply to the processing of the
copy of the check than apply to an electronic fund transfer. More detailed
information about this process is available at the following internet site: https://www.pccotc.gov/pccotc/pcc/usingpcc/about.htm
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