What is an Echeck Payment Processing?
We are an Echeck Payment Processing provider which is an electronic payment solution. Echeck enables merchants to deduct funds directly from customer bank accounts. Echeck transactions save time and money, unlike credit card transactions. There are no interchange fees involved. Additionally, the customer and merchant do not exchange any documents or check numbers.
The functioning of Echeck payment processing
The customer provides preauthorized written, verbal or electronic permission for the merchant to process the check. So, Through a batch file transmission, a payment gateway or a virtual terminal, the check is converted into an Echeck transaction and it is submitted to the merchant’s payment processor. Therefore, the merchant’s check processor sends the Echeck transaction to the customer’s bank and checking account to debit the approved funds.
An Echeck payment usually takes between 3-7 days to clear. However, NACHA, the Electronic Payments Association is making changes leading to same-day Echeck payments. The inner workings of an Echeck transfer may appear complicated, but it is simply the process of debiting money from the customer bank.
Benefits of Echeck Payment Processing
An Echeck Payment Processing is convenient. There’s no need to write out by hand the amount in numbers and letters. So, no need to hope they didn’t misspell the recipient’s name.
Most of the stores these days are willing to accept paper checks from people they don’t know. The risk is too great. Anyone can hand over a check for a million dollars. But the payee won’t know if the buyer actually has a million dollars until they’ve taken the check to the bank and waited for it to clear. For online sellers and service providers, in particular, paper checks have no place at all in their business flow.
Even for large firms, such as insurance companies to produce, approve and issue them. Echeck Payment Processing can create a process that is easier, faster and a great deal cheaper. Hence, businesses that use electronic check conversion have reported receiving their funds nearly twice as quickly as companies. So, billing companies can receive their payments within a day.
Echeck Payment Gateway
Echeck Payment Gateway benefits small businesses. So, not every seller is capable of accepting credit cards. For small payments, they’re barely worthwhile and sellers have always struggle to open accounts with credit card companies. The Echeck Payment Gateway is also more accurate.
Echeck Gateway enables the people to make online payments without using a credit or debit card, and without putting any money into an online payment platform. So, both of these have valuable advantages. Not everyone uses a credit or debit card, and many of those who do use these cards worry too much about online fraud to enter their details into an online form. Filling an online account with cash can be inefficient if the buyer is uncertain how much they’ll need to pay in fees and therefore how much they’ll need to transfer to the platform in total. Because an Echeck draws funds directly from a bank account, the buyer only needs to use exactly the amount they need to pay. So, they won’t be leaving any funds in an online account they don’t intend to use again.
It’s that combination of extra convenience, a faster process for both clearing and notification if a check bounces, and lower costs that make Echeck so attractive to both buyers and sellers.
Echeck Gateway is versatile to use them you don’t need any more than an ordinary checking account. Even if you can’t use a credit card or don’t want to use a credit card, you can still make and receive digital payments using Echecks, including for online purchases.
The benefits of Echeck Gateway:
- Low-cost for both customers and businesses.
- High speed: Functionally, recipients don’t need to take a physical check to the bank, and banks don’t need to scan or transport them, cutting days from the processing.
- Greater accuracy: Echecks reduce the risks of mistakes during processing in comparison to physical checks.
- Environmentally friendly: The Echeck Gateway isn’t written on bits of tree that will later be shredded.
- Greater convenience: Therefore, Echeck is available to anyone and represent a familiar way to settle a payment.
Echeck Payment Processing for Any Type of High-Risk Businesses
eSecurePay offers ACH and Echeck Payment Processing services to virtually any legal business, including these high-risk businesses:
- Vacation Rentals
- Web Hosting
- Warranty Services
- Legal Services
- Video Streaming
- Medical Services
- Multi-Level Marketing (MLM)
- Timeshare Sales and Advertising
- Nutraceuticals/Dietary Supplements
- Tickets to Shows/Events (advanced booking)
- Penny Auctions
- Precious Metals and Jewelry
- Prepaid Phone Cards
- Property Rentals
- Remote PC Technical Support
- Search Engine Marketing (SEO, PPC, etc.)
- Sports Picks and Handicapping
- Stun Guns/Personal Defense
- Tax Debt Reduction
- Non-Accredited Degrees
- TMF Merchants
- Tobacco Products
- Travel Services
- Magazine Subscriptions
- Large Ticket Sizes
- Investing Advice – Stock Tips/Trading Software
- Hotel Reservations
- Furniture/Home Decor
- Gift Certificates/Gift Cards
- Alcohol Sales via Internet and Phone
- Bad Credit
- Bail Bonds – Card Not Present
- Business Opportunity
- File Sharing/Cloud Hosting
- Collections Agencies
- Financial Services
- Credit Repair/Credit Counseling
- Currency Exchange (FOREX, Bitcoins, quasi-cash)
- Daily Deal Coupon Websites
- Dating Websites and Services
- Debt Reduction/Debt Consolidation
- Discount Medical Cards/Memberships
- eBay Merchants
- eBooks/Digital Downloads
- Electronic Cigarettes (E-Cigarettes) and Accessories
- Escort Agencies
- Extended Warranties
- Continuity (free-trials, negative option/opt-out billing)
- Annual Memberships
- Adult Websites/Novelties
Virtual Check Solutions
Similarly, virtual check allows merchants to enter their customer’s bank account information into a checkout page, virtual terminal, Web API or batch upload to collect funds. Once transactions have submitted, they will be verified to make sure the consumer bank accounts are valid. If the check does not get declined through the authentication process, the checks are turned into a remotely created check (RCC) and then printed out into a demand draft. The processor will then take the demand draft(s) to the merchant’s bank account for deposit.
Check 21 Processing
Check 21 has the method of creating a scanned version of a paper check to submit as payment. Once the check is scanned, it follows the path of a physical check: The image processed at the Banking System, and once approved, the customer’s checking account is debited. The funds are then transferred to the merchant’s account.
Frequently Asked Questions
How do you pay with an Echeck?
Beneficiary sends you an online payment form where you fill in your checking account number and routing number, as well as the amount of payment. By clicking Submit you are authorizing the Beneficiary to withdraw the payment amount from your checking account.
How does an Echeck work?
Echecks work the same way a check does. The Beneficiary Deposits the Electronic Check, receives credit, and the beneficiary’s bank Clears the Echeck to the paying bank. The paying bank validates the Echeck and then Charges the check writer’s account for the check.
Is Echeck the same as ACH?
Echecks and ACH are quite similar, and in fact, the two terms are often used interchangeably. ACH or Automated Clearing House is the process use to move money electronically from one bank account to another. An Echeck is an abbreviation of the term Electronic check and is more of payment instead of a process.
Is paying by Echeck safe?
Echecks are safer than paper checks. Paper checks pass through more hands than Echecks, which creates more opportunities for fraud and interception by criminals. But with Echecks, the information is transmitted directly to the financial institution.
Can you send a check online?
There are still several online retailers that accept checks as payment. Usually, you’ll have to mail the check personally, but most of the online retailers allow you to send the check electronically.
How long does it take for a check to come out of my account?
This is not something that is generally enforced for individual account holders. The date on the check isn’t usually scan at all when deposited. Once the check is finally deposited, you can expect 3 days to a week for the check to settle or clear.
Is Echeck the same as debit card?
With an Echeck, the transaction is not sent to the bank for approval prior to making the payment. Instead, the merchant sends the transaction to the bank later, sometimes as many as one or two days after you make the payment. Debit Card transactions will give you more control for one-time payments.
How can I send an Echeck?
The payee sends you an online payment form where you fill in your checking account number and routing number, as well as the amount of payment. By clicking Submit you are authorizing the payee to withdraw the payment amount from your checking account
Do electronic checks bounce?
Echecks, like paper checks, can bounce or be returned for a variety of reasons, including for a stop payment, liens or blockages against the checking account, non-sufficient funds, stop payments, fraud, or accounts being closed. The system reduces these occurrences, and when they do happen, the cost is minimized.
Is electronic check safe?
Echecks are safer than paper checks, Paper checks pass through more hands than Echecks, which creates more opportunities for fraud and interception by criminals. But with Echecks, the information has transmitted directly to the financial institution.
How do ACH/Echeck Payments Work?
ACH/Echeck payments are electronic payments made through the Automated Clearing House (ACH) Network. Funds move from one bank account to another with the help of an intermediary that routes funds to the final destination. Computerized payments can provide benefits to both merchants and consumers.