What is Echeck Payment
What is Echeck payment: An electronic check is a form of payment where a customer’s funds are transferred into a merchant’s account over the ACH (Automated Clearing House) network. Hence, To process such payments, a trader requires Echeck processing, through which payments made by eChecks can be withdrawn directly from the client’s bank account.
Electronic checks or Echeck are simply a digital version or representation of a paper check. It contains the same information, is based on the same legal framework, can be directly exchanged between two parties, and can be used in any and all remote transactions where paper checks can be used.
What Types of Payments Can Be Made With Echecks?
What is Echeck payment: Electronic checks are one of the most popular payment methods in the USA. Therefore, In any US business, Echeck has widely used for accepting payments. Hence, Echeck is an electronic substitute for a paper check. Hence, Echeck contains the same information as a paper-based check. So, many people have some doubts that are Echecks safe for online purchases. Echeck can be used within the United States. While transaction in Echeck processing, the bank account of the payer must be present in the US itself. If the payer does not have an account in the US, the overseas purchase is not possible.
Echeck and electronic payments have made to anyone who accepts them. Most of retailers are accepting the Echeck payment method because it very faster and secure for online transactions.
Echecks work well for recurring payments. Some examples include:
- Mortgage payments
- Health club memberships
- Auto loan payments
- Rent payments
- Credit card payments
How Echecks Payment work
- The electronic payment is authorize and verified by the merchant POS or online gateway. This is where the customer inputs their routing and checking number and agrees to certain Terms & Conditions as noted by your gateway.
- The transaction and payment information has recorded and delivered to the participating banks by the merchant’s payment software.
- The merchant approves or denies the transaction (determined by established security measures).
- If approved, the funds has withdrawn from the customer’s checking account and delivered to the merchant’s connected account within 3-5 days.
- Merchant software automatically delivers a receipt to the customer to their email address.
It sounds a little convoluted, but remember that software handles pretty much all of this.
Some Benefits of Echeck:
- Electronic check relies on the ACH processor. Hence, ACH processor is a reliable system that manages direct deposits in bank accounts.
- The processing cost of Echeck has low as compared to physical checks and credit cards.
- Echeck reduces the use of paper checks which promotes a paperless transaction.
- An electronic automated process minimizes the error.
- Some third-party ACH processing companies do support Overseas merchants on a case by case basis.
Is Echecks Secure?
With anything done electronically or online, there are always security concerns. So, sadly online criminals and hackers are becoming more sophisticated all the time. We hear about data and security breaches of one sort or another on a regular basis.
That said, Echecks and electronic payments are generally considered to be secure, more secure than physical checks in many cases. This is because there is no physical document to intercept. So, Over the years, thieves have found ways to use physical checks in a number of ways to commit fraud and identity theft.
Can an Echeck 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.