1. What is an eCheck?
An electronic check (also known as an eCheck or a Back Office Conversion (BOC)) is an electronic version of a paper check. As technology changes the way things are done, people saw the need to convert traditional checks into electronic payments that can be processed through Automated Clearing Houses (ACHs), easily and efficiently. Since electronic checks have more security features compared to paper checks, they are safer to use for business payments – protecting both you and your customers.
2. How do eChecks work?
There is nothing complicated in how electronic checks work. It all starts when you run a customer’s paper check through an electronic scanning system that you can find from merchant service providers. The scanner will capture the customer’s banking information and the amount payable. Then, this information is sent to the Federal Reserve Bank ACH network electronically. The ACH network in turn takes the funds from the customer’s account and deposits it in your account. When the payment is completed, the virtual terminal will print a receipt which the customer signs and keeps. That’s pretty much the how eChecks work.
3. What is ACH and how does it make eCheck payments possible?
The ACH is a network that helps to distribute funds electronically among users. It’s a very reliable nationwide network governed by the Federal Reserve (Fed) and NACHA (the National Automated Clearing House Association). The main benefit of using ACH networks rather than traditional paper checks is the greater speed of transactions. Since the network allows for electronic transfer of money to and from banks, it is very swift with very few delays if any.
4. What are the advantages of eChecks?
eChecks are beneficial in several ways;
- They reduce processing costs by more than 60%
- The process is much faster than traditional paper checks
- It expands your payment options which could lead to increased sales
- It is a green option; say no to paper pollution
- Guarantees minimal errors and fraud. To further protect your business, use;
- Duplicate detection, and
5. How do I get started with eChecks?
- How do I get started with eChecks?
Start by finding an experienced and reliable electronic check processing provider. Then notify your customers that you’re now accepting eCheck conversions. And, that’s it. Get ready to see more customers who enjoy electronic transactions.