Frequently Asked Questions About eChecks

Jul 29, 2021

With so many payment options coming to the fore, eChecks have been gaining ground in the last decade. In a Federal Reserve Payment Study in 2016, it was discovered that ACH payments grew at a yearly rate of 4.9 percent from 2012 to 2015. 

The Most Popular Questions About eChecks With Answers

Businesses that are interested in accepting eChecks as another payment method have many questions as to how eChecks work and the cost. We will be addressing these and other questions below.

  • What are eChecks?

Electronic checks, also known as eChecks, are a type of payment that can be made online or another type of “data network”. eChecks are made to function identically to a conventional check. And since this type of check is electronic, processing can take place in fewer steps. 

  • How Do You Process An eCheck?

A business begins by requesting authorization to process an eCheck on an online payment form, a signed order form, or an agreement by phone. 

Once the authorization process is done, a payment gateway will accept all the data related to the payment. Once the payment gateway receives this information, the ACH transaction process begins. 

  • What Are The Benefits Of Accepting eChecks?

 Processing fees are considerably lower than for processing credit cards. 

Another great benefit that eChecks offer is security. Surpassing the safety measures of traditional paper checks, eChecks offer public-key cryptography, digital signatures, encryption, authentication, and so much more. 

  • What Are The Differences Between An eCheck, An ACH, And An EFT?

An EFT is known as an Electronic Funds Transfer. This can take place in the form of wire transfers, eChecks, direct deposits, ACH disbursements, and Electronic benefit payments.

ACH is known as the Automated Clearing House. This is the U.S. electronic network that enables users to send and receive digital transfers to individuals and merchants. 

EChecks are a form of EFT that needs an ACH network in order to get processed. 

  • Can I Use eChecks For Recurring Billing?

Absolutely. EChecks are quickly becoming the most popular type of recurring payments. Recurring eChecks are similar to recurring ACH payments. In order to set up recurring eCheck payments, you will need to get in contact with your payment services provider. 

  • How Do I Send An eCheck Payment?
  • The online form: The receiver can send you an online payment form to send in or you can find it on the merchant’s website. You need to include your checking account number, the routing number, and the amount of payment. Then you click “submit” giving permission for the fund’s withdrawal.
  • A recorded phone call: A payee can ask for your checking account and routing number on a recorded phone call. The payee enters your financial information and the amount of payment on the online payment terminal. The payee then clicks on “process” and the payment transaction begins. 
  • How Much Does It Cost To Process An ECheck?

Fees will vary depending on the business. Typically, an average eCheck fee ranges anywhere from $.30 to $1.50.

  • When Will I Receive The Funds From The eCheck Payment, As A Merchant?

The clearing process varies depending on the payment service provider. Normally it takes 48 hours. If the payer has sufficient funds in their bank account, the merchant can expect to receive their funds within 3 to 7 business days. 

The Many Benefits Of eChecks

Businesses would do well in adopting as many payment methods as possible in order to cater to a wide variety of clientele. With eChecks, you simply can’t go wrong as it is one of the most secure and affordable methods to accept payments. 

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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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