What is an Echeck?
July 16, 2021 | Merchants | Dustin
An eCheck or electronic check is an electronic version of a paper check. Instead of paying with a traditional check, the payment processes online through Automated Clearing Houses also called ACH.
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Customers who select an eCheck as their payment option enter their bank routing number and checking account number to complete the electronic check transaction.
How To Process with Echecks
Processing with an echeck is simple, and results in much lower costs than credit cards. Here’s how to do it:
- The merchant uses their standard payment gateway
- The gateway encrypts the banking information
- The payment info travels between merchant and customer banks
- Funds exit the customer’s account by the ACH network
- Money deposits into the merchant account
This alternative to traditional, recurring payment or electronic payment options serves as a convenient way to process credit card payments online.
What Is An eCheck and How Does It Work?
eChecks are used to speed up the payment processing time when compared to traditional checks. It eliminates many of the steps relative to standard paper checks.
This makes eCheck processing faster. New industries welcome the use of electronic checks for depositing and purchasing options. For example, in Europe, there are even casinos that accept echecks.
Pay Online and Save Fees
Electronic checks also enable consumers to pay online without having to mail in their paper check or deliver it in person. Money can move much quicker this way.
As a result, it speeds up purchasing and online transactions. Businesses receive their funds sooner and consumers get their goods or services delivered faster.
Echecks and Payment Processing
Echecks are short for electronic checks. Much like a debit card, they directly transfer money from one account to another. Echecks are multifunctional; they can pay online bills and digital invoices.
Moreover, electronic checks are considered a reliable and safe means for small and large businesses to transact through ecommerce channels. Much like a paper check, the same information is entered electronically shared through bank accounts.
One of the benefits of paying with echecks is their ability to verify the information. You can send them anywhere, anytime, and also make sure they process when you want them to.
Comparing to Standard Checks
With standard checks, a merchant may hold on to funds and cash the check at an inopportune moment. With echecks you can also keep track of your account details and find when and where money has left your account to make a payment.
Are eCheck Payments Safe?
Electronic payments are standard in this day and age. From online shopping to electronically paying bills, there is a great need for secure and reliable payment processing through electronic means. eChecks offer an efficient way to transfer funds from payer to payee. But are they safe?
Electronic checks are steadily growing in use. While many people are not hesitant to enter their credit or debit card information online, some pause to consider whether or not eChecks are safe. It may be surprising to learn that eChecks are one of the safest types of online payments. In fact, they may be safer than traditional checks.
How To Pay With eCheck
Paying with a paper check increases your risk for fraud. More people come into contact with a paper check through the payment process. Therefore, making it a high risk of fraud or criminal activity. With eChecks, fewer people come into contact with sensitive financial information. Routing numbers and account numbers send directly to the financial institution of the payee. This protects both the small business and the consumer.
Part of what makes eChecks so secure is the payment process. eChecks move through four stages, including authorization, processing, finalization, and deposit.
- The authorization stage protects the payer by ensuring the transaction is valid.
- Processing involves a funds transfer between one bank account and another.
- Finalization verifies that all account information is accurate.
- The deposit stage completes a successful transaction. Both parties receive alerts that the payment completed.
- A receipt provides the final documentation for the eCheck transaction.
Accept eCheck Payment
Many businesses may find it easier to accept eChecks than paper checks. If merchants receive a paper check with missing information, such as a date or signature, it can be a headache to process the payment and clear the deposit. With electronic checks, incomplete or invalid information halts the transaction. Consumers have the chance to rectify any issues before the transaction starts.
How To Receive An Electronic Check
Looking for a way to receive echecks? First you’ll want to have a payment processing provider who is versed in online transactions. Find a processor who specializes in dealing with echecks. They can walk you through the details, and set up your account with this game-changing tool. Contact PayKings to open up a merchant account and apply for an electronic check payment for your e-commerce site.
Echeck transactions benefit all parties involved. This is mainly because the faster speed and increased security of the transaction. With encrypted and secure information traveling between parties, they are safer and more reliable. So businesses that use payment processing software and echeck payment gateways benefit from accepting eChecks. This software can automatically detect fraud and flag suspicious transactions.
Customers enjoy peace of mind knowing their payments process securely and information passes directly to the financial institution. They do not have to fear about their check and sensitive information falling into the wrong hands.
Finally, eChecks allow merchants to offer a wider range of payment options. With more options, businesses can increase their chances of making a sale and provide added convenience to their customers.
July 16, 2021 | Merchants | Dustin