Nowadays, technology played a vital role in our daily activities. One of those activities is having a bank transaction. In this 21st century, banks with the help of modern technologies have levered the strategy of operations to lessen the hassle of their clients. This strategy includes transforming a paper check into an electronically made check or also known as eCheck.
Among many terms in all bank transactions, let’s focus on how eCheck works in the bank industry and its significant value to clients. Be ready to understand what bothers you in your bank transactions entirely.
An electronic check is a form of online payment as the money is withdrawn electronically from the checking account of the payor, transferred over the ACH network, and then deposited into the payor’s checking account. There should be authorization from the customer before the payment is made. eCheck is an electronic representation of a paper check either through a signed contract, a recorded conversation, or acceptance of the website’s “Terms and Conditions.” eCheck is used by the United States’ financial institutions to provide leverage to payment processing companies.
eCheck is only a type of Electronic Funds Transfer (EFT) that uses Automated Clearing House (ACH)- a network to process payments. It can be sent through any variety of new checking account given by your bank, which is their offer for you to do your transactions online.
How does eCheck work?
There are essential characteristics and distinctions between eCheck, paper checks, and other EFT transactions. eChecks work the same way as an additional check does. However, the process goes like this:
- The payment and transaction details are delivered and recorded by the merchant’s payment software to the participating banks.
- Merchant POS or online gateway authorizes the electronic payment where the customers input their checking and routing number and accept the specific Terms & Conditions as indicated by their portal.
- You will be the one to approve or deny the transaction through established security measures.
- If you approve the transaction, then the funds will withdraw from the checking account of the customer and will be delivered to the merchant’s account within 3-5 working days.
- Merchant software will automatically deliver a receipt to the email address of the customer.
*Note: To identify your ACH routing number, look at it in your checkbook. It could be the nine-digit number at the left corner of your account number. Your routing number serves as an identifier of the location where you opened your account.
To make payments using eChecks, you need to provide the information below:
- Your bank account number (typically a checking account)
- Your bank routing number
- The name on your bank account
Use eChecks for the following reasons:
This type of Electronic Fund Transfer (EFT) made to make transactions more convenient to the bank clients. And upon digging deeper about eChecks, it has significant new features that you must know and enjoy:
- intensified abilities such as useful dating
- the capacity to manage bank transactions, with the remaining strength to assure the safety to use on the internet
- limitless, but still in control, the capability to carry information
- automatic confirmation of validity and content
- lessen fraud losses for all faction
- endured features of traditional checking such as reconcilement and stop transaction of payments
- eCheck is cheaper than most of the other methods of online payments which have the value typically 25cents to $1.50
eCheck is a leading way to the environment of Electronic Commerce for consumers as well as for business. As banks control the process, provides leadership, and make payments mechanism a progressive method.
Create and Send eChecks:
For you to send eChecks, you will need banking service. This will allow you to send and create eChecks form:
- Most of the traditional and national banks offer eCheck’s usefulness from the online banking platform — simply login.
- eCheck functionality tends to offer by internet banks.
- eCheck sellers will instruct you to sign up, transfer money through eCheck online, and link the service to your bank account.
- Paypal has a hybrid eCheck service where you can make your PayPal payments through your bank account from eCheck.
- You will see a text box requiring you to give your account number and routing number.
*Note: Routing number is the first number at the bottom of the physical check and has nine digits. This number is essential to determine the specific branch and branch location you are using while your account number is usually 8-10 digits located after your routing number at the latter part of your checks.
- Some eChecks also require check number; some does not. If you’re required to give the details of your check number, look for the number of your current checkbook. Make sure to revoke that paper check. If you don’t have it, you can leave that section blank.
eCheck, as a modern form of banking, meets the requirements of businesses and clients. Even high-volume enterprises or retail companies gain improved security and flexibility from electronic check (eCheck) and ACH network transactions. Also, it always comes cheaper when accepted.
Are you now attracted to support eChecks? Tell me your opinion about this post and if you have more questions to clarify. We will be hands-on in responding to your comments.