In reality, the eCheck, short for an electronic check, is basically a financial instrument that that is used for transferring money from account to account. It is a relatively newer type of online payment where the money gets withdrawn from the account of the benefactor via an electronic medium. The entire procedure is simple and revolves around the ACH or an automated clearing house network. The end destination is always the same, that is, the bank account of the beneficiary. The idea is that along with an ACH network, a business house can withdraw the respective sum of money from the designated bank account for the concerned good or service. The authorization of the payment must be done by benefactor either by way of a signed or written contract, by way of accepting the website’s “terms and conditions”, or by way of a recorded conversation.
So How Does eCheck Processing Really Work?
The electronic check or the eCheck is the new deal in the market. eChecks have a lot of benefits and have become immensely popular among users for the same reason. The major benefit being the efficiency that is achieved through time management. Time is money in today’s world and whoever masters time is the real winner. With the help of eChecks, users spend no time in making a transfer. And not only this, but there are no humongous amounts of fees involved as in the case of credit cards. When it comes to processing, eCheck processing is very similar to that of traditional paper check processing. The only difference is that the entire process is undertaken online and that it is way faster. In place of a customer manually putting down information in traditional paper checks and sending them to the beneficiary they need to pay, the technology available enables the process to happen on an electronic medium, thus, saving both papers as well as time.
There are basically four main parts to processing an eCheck. They are as follows –
Hope that information helped.
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