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Investopedia explains 'Accounts Receivable Conversion - ARC'
As the financial industry becomes increasingly computerized, ARC has become the norm rather than the exception for large payment processors. Prior to ARC and electronic payments, the most common method of payment was lockbox banking, in which payments are made to a post office box serviced by a bank.
ARC speeds the payment to the vendor, who otherwise would have to wait for an actualy check to be transported and processed.
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