Things You Always Wanted To Know About eChecks
Preference to pay electronically goes unannounced in the digital era. eChecks can prove to be really helpful for making fast and convenient payments besides being less expensive.
An eCheck or electronic check is an electronic version of the traditional paper check. These payments allow a payer to electronically transfer fund from their bank account to payee’s bank account via Automated Clearing House network (ACH).
Breakdown Of eCheck Processing
The whole process of an eCheck payment can be understood by getting through the four stages of eCheck processing:
Authorization- At the very beginning of the process the payer sends authorization to the payee for establishing validation of transaction. An online form needs to be filled by the payer after which processing starts. It can also be handled over phone or online payment processor can do the job on merchant’s behalf.
Processing- Once the authorization is approved the online payment processor begins the process of transferring the funds from one bank account to other. Instead of manually entering the amount of money and correct account details the processor can do it for merchant automatically.
Finalize- At this stage, the payment processor ensures the account and routing numbers are accurate with the help of payments software. If everything is correct the transaction enters the ACH system. At this very stage the deductions are made from the payer’s account to pay the payee.
Deposit- Funds from the payer’s accounts are deposited into the payee’s bank account. Both the parties receive confirmation of the transaction, either via mail or printed receipt.
And this is how an eCheck payment processing is completed.
Benefits Of eCheck Processing
Benefits of using eCheck payments are many and below listed are the most important ones:
Easy and convenient process- Paying and receiving payments through eChecks is an easy process. Unlike the traditional paper checks you don’t have to visit your bank. It can be done online from wherever you are, provided you have an internet supported device.
Fast processing- It takes much less time to transfer the funds electronically than paper check processing.
Less expensive- Processing fee of eChecks is less than card payment processing and also papers are not wasted, making it a smart choice.
Safe method- Sending or receiving funds through eChecks is actually safe than the traditional checks as the chances of frauds are too less.
eCheck processing is found to be much faster and less expensive than credit card processing. Merchants irrespective of their business-type and size have no reason to skip on eCheck payments.