Check conversion commonly refers to changing a paper check into what?

Check conversion refers specifically to the process of transforming a paper check into an electronic format, allowing for quicker processing and settlement. This typically occurs within the framework of Automated Clearing House (ACH) transactions, wherein the information from the paper check is captured and used to initiate an electronic debit from the payer's bank account.

This method streamlines payment processing, eliminates the need for physical handling of checks, and facilitates faster clearing times for transactions. By converting a paper check into an electronic ACH debit, organizations can enhance their efficiency in managing accounts receivable and improve cash flow.

In contrast, options involving physical cash equivalents, digital payment apps, or secured digital documents do not accurately represent the specific nature of check conversion, which is primarily focused on the shift to electronic debits within the ACH network.