Is Your Business Looking To Accept eCheck? Read on to learn more.
What is an eCheck?
In the simplest terms an eCheck is an electronic version of a traditional paper check. You withdraw the money electronically from the payee’s bank account and deposit it into the receiver’s account. The payee must give authorization to initialize the payment.
- Uses the same account and routing information as paper checks
- Offers the same legal protections as paper checks
- Customers use eCheck to pay for good in the same way they use paper checks
- Can serve as a value-add for your paper checks by providing additional information
How Do eCheck Payments Work?
The same way paper checks do… just electronically! You “write” the check through an electronic system and the funds are transferred to the receiver’s account. Just like paper checks, the payee’s bank clears the check to the paying bank. This whole process works much faster when done electronically. The process involves 4 major steps:
- The payee must authorize the transaction, whether it is a one-time payment or a recurring set of payments. This authorization is usually done either over the phone or via an online form.
- When the authorization of the eCheck payment is received the information is submitted electronically to a payment processing service such as EPS.
- They payment information is transferred over the ACH network by the payment processor.
- The payee’s bank withdraws the funds from their account immediately and are deposited in the receiver’s account within about 3-5 business days.
So, Why Should Your Business Accept eCheck?
- You can conduct bank transactions safely over the internet—it is the most secure payment option available
- Decreased incidences of fraud for both parties
- Automatic verification of funds
- Lower transaction fees than most other methods of accepting online payments, such as credit cards
If you have any questions or would like to learn more about eCheck processing or accepting electronic checks give us a call 24/7 at (855) 886-5909 to speak to a live, US based representative. Or, fill out the form at the link below and someone will be in touch ASAP.