E-checks Are Paperless and Convenient, But Are They Safe?

Sep 27, 2019

eChecks are arguably the most popular form of payment among US consumers. They are also a great solution for high risk merchants because they are known to increase sales and profits.

By definition, eChecks are simply an electronic form of a paper check that gets processed through the Automatic Clearing House (ACH) network. When customers get ready to pay via eCheck, they simply enter their bank account number as well as their routing number. The merchant’s payment gateway takes that information and encrypts it and then submits it to the Federal Reserve Bank ACH network.

Databases and fraud prevention tools are utilized not only to verify the person’s identity but also to determine the risk of the transaction. Once approved, the ACH network withdraws the funds from the customer’s account and deposits it directly into the merchant’s business account.

There are many benefits in accepting eChecks as a form of payment in business. One of the main selling points is the speed. Whereas a paper check takes a day to clear, an eCheck is approved instantly since it is processed electronically.

Another benefit is that consumers want to be given various payment options. By providing eChecks as a form of payment, merchants will see an increase in sales. In addition, the processing fees are considerably lower than credit card processing, which means adding more to the merchant’s bottom line.

eChecks are also easy to set up. All the merchant has to do is select a certified gateway partner.

So just how secure are eChecks?

Over the years, electronic encryption has greatly improved. When a certified gateway partner is selected, all the resources such as authentication, electronic encryption, and duplicate detection are utilized to prevent data theft and fraud.

Risk is virtually eliminated since all checking account data is verified and a database is used to screen for bad checks.

If customers do notice a fraudulent purchase on their account, they are protected by Regulation E, which is a Federal Reserve regulation. This allows the consumer to revoke a payment that they did not authorize. They are given a window of 60 days from when the charge took place to dispute the charge.

Another bonus is that transferring funds electronically is vastly more secure than a paper check. There is no physical document that is getting handled and thereby compromising sensitive information. The chances of a check holder’s account information being accessed are virtually non-existent.

No matter how a transaction is carried out, an electronic check transaction is protected whether a person pays by phone, at a point-of-sale (POS) system, or online.


The first step in accepting and processing eChecks is to find a reputable and trustworthy electronic check processing provider that can meet your needs.

eMerchantBroker.com (EMB) is an eCheck processing provider that specializes in high risk businesses. It offers custom payment solutions, a secure payment gateway, and chargeback prevention tools. Get in touch to start accepting eChecks as an alternative form of payment today.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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