Modern technology enables people to enjoy fast and easy payment transactions all around the globe. Huge advances in the world of payment technology have turned paper checks into electronic transfers (debit), which are also known as electronic checks or eChecks. Electronic check processing is an essential part of any modern business.
Modern eCheck Payment Processing. How Does It Work?
eCheck payment processing can be characterized as a simplified check cashing. This is a hassle-free and low-cost method of getting paid quicker. This is an extremely important payment service for merchants. It helps them meet all their payment processing needs without challenges.
The electronic check processing begins as soon as a customer writes a paper check at the POS or point of sale. The clerk uses an imager or reader to run the check through it. The reader captures the required data such as the routing number (number identifying the financial institution), check and account numbers. The clerk also enters other merchant-related data to finish the one-time electronic payment processing from the target account.
The check gets verified or guaranteed by the provider, based on the merchant agreement with the target payment processor. The check writer signs the receipt generated and printed. Then, the check is voided and returned back. This way, the transaction appears on the customer’s bank statement as a debit and not a check.
The merchant uploads the captured check data to his/her payment provider for processing. The proceeds are deposited into the merchant account within 1-2 business days. So, the eCheck process is like a check mailed in payment of a bill. Only, the merchant must keep the check after it is voided.
eCheck Payment Processing Benefits
Merchants can benefit from electronic check processing in a number of ways. Electronic check processing with emerchantbroker.com (EMB) is extremely easy and effective. EMB offers comprehensive and premium eCheck payment processing solutions to increase revenue, reduce chargebacks and customer disputes. EMB is an ideal choice for high-risk merchants looking for affordable check payment processing.
Thanks to eCheck processing, merchants or service providers can now electronically transfer funds from a client’s or customer’s bank account directly into their bank account, using the Federal Reserve Bank’s ACH (Automated Clearing House) system.
Merchants aren’t obliged to take checks to the bank. They can also enjoy speedy deposits. With eCheck processing, there aren’t any check deposit slips to complete. Beyond that, it minimizes the risk of checks being stolen or lost before they are deposited.
If you’re a merchant working out of more than one location, you can have checks converted at each location and funds centralized in one main account. Guarantee programs facilitate and accelerate the collection process through a rapid discovery of insufficient funds (NSF) checks and other returned items. There are payment providers that make account activity available online, which allows keeping records easily.