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What Is An Echeck?

What is an eCheck?

Take a traditional paper check, turn it into the electronic version, and you have an eCheck! Funds from the customer’s bank account are taken electronically and deposited into the merchant’s account, or to an eCheck payment service provider which then settles to the merchant. To initialize the payment, the customer gives authorization online or over the phone.

Features of eChecks

  • They use the same routing information in the same account as a paper check
  • They have the same legal coverage as a paper check
  • Customers can pay for goods the same way they do with a paper check

How eCheck Payments Work

eChecks work in the same way that a paper check does. The customer writes the check electronically and then the system debits the funds. The payee’s bank (or eCheck payment service provider) will clear the check and then send the check to the paying bank. The time it takes is considerably less when compared to a regular paper check.

The Benefit of Choosing the Best Payment Processing Partner

  • A customer authorizes the transaction. It might be a recurring payment or just a one-time payment. The customer can authorize online or over the phone.
  • When authorization for the eCheck payment is received then this information is submitted in electronic form to a payment processing service.
  • The payment information is then transferred and picked up by the payment process (through a network such as ACH for example)
  • The payee’s bank then withdraws the funds from the account immediately and deposits them in the receiver’s account, or that of the eCheck payment service provider.

Should Businesses Accept eChecks?

Businesses should accept eChecks because they can conduct their bank transactions in a safe fashion over the Internet. This is a very safe way to make payments, with fewer instances of fraud on both ends. The funds can be verified automatically and there are lower transaction fees when compared to other payment methods like credit card.

If you want to know more about eCheck processing or accepting electronic checks online please contact us. If you want to start using eCheck right now you can get started by completing our pre-application form.


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