As of 2017, eChecks are an established online payment method that enjoys high popularity all over the world. Virtually all major payment gateways offer eCheck payment options together with various other payment services. As of 2017, paying by eCheck is still among the most secure and affordable methods of making a payment directly from your bank account to another party, as well as paying for goods or services.
Merchants interested in check processing companies should consider applying to EMB, which is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB. Emerchantbroker.com is also a reputable business funding provider and has an A rating with Card Payment Options. Moreover, EMB is named one of Inc. 500’s Fastest Growing Companies of 2016.
Here are the top 10 questions and answers associated with electronic checks:
What’s an Electronic Check?
The electronic check or eCheck is an innovative, all-electronic way to make payments online. Consumers and businesses of all sizes and types can issue, receive and process eChecks, either singly or not. They don’t require expensive and disruptive re-engineering of business practices.
How Does eCheck Processing Work?
eCheck processing and paper check processing are somewhat similar. However, eCheck processing is faster. eCheck processing is based on:
- Request Authorization
- Payment Setup
- Finalize and Submit
- Payment Confirmation and Funds Deposited
What Does EFT Stand for?
EFT stands for “Electronic Funds Transfer,” which includes many types of financial transfers:
- Wire transfers
- Direct deposits
- Electronic benefits payments
- ACH disbursements
What Does ACH Stand for?
ACH stands for “Automated Clearing House,” which is the electronic network used by the US financial institutions. It provides the infrastructure used by payment processing companies.
What Types of Payments Can eChecks Be Used for?
It’s popular to accept eCheck payments for high-cost items, including rent, mortgage or car payments, and high-cost monthly fees, including legal retainers and fitness memberships.
What Is a Recurring ACH Payment?
A recurring ACH payment and a recurring eCheck payment are the same. Property managers will often ask tenants to fill out a recurring eCheck rent payment form, which will allow them to automatically deduct rent from their tenant’s checking account on a certain day each month.
Can eChecks Be Used for Recurring Payments?
eChecks are a popular type of recurring payment.
How Long Does eCheck Clearing and Processing Take?
The eCheck clearing process depends on the provider. As a rule, funds verification takes 24 – 48 hours of the transaction being initiated. If the payer needs to get the funds in his/her checking/bank account, the transaction will be cleared within 3 – 5 business days, and the funds will be moved from the payer’s account to the payee’s account.
Are eChecks Secure?
Strong cryptographic algorithms are used in the digital signatures, making eChecks practically immune to forgeries. They can automatically be verified at every step in the check processing flow.
What Are the Advantages of eChecks?
eChecks save money, offer instant processing and less error, are secure and are accepted globally.
US noncash payments, including debit/credit card, ACH, and check payments, accounted for more than 144 billion with a value of almost $178 trillion in 2015. This is nearly 21 billion payments or about $17 trillion since 2012. Total noncash payments grew at an annual rate of 5.3% by number or 3.4% by value from 2012 to 2015.