Figure 28.1 POS Conversion Customer’s Bank Merchant’s Bank Customer Step 4 Customer’s Bank Merchant’s Bank Step 3 Step 5 Step 4 Step 2 Step 1 Customer Merchant Step 1: The Customer gives a check to the Merchant. The Merchant runs the check through a reader (capturing the information on the MICR line of the check) and returns the paper check to the Customer. Step 2: The Merchant sends to its bank a message including both the amount of the transaction and the data from the check about the Customer’s bank account. Step 3: The Merchant’s Bank sends an ACH debit entry to the Customer’s Bank. Step 4: The Customer’s Bank responds to that entry by removing funds from the Customer’s account and sending them to the Merchant’s Bank (through the ACH network). Step 5: The Merchant’s Bank credits the Merchant’s account.