What Is An eCheck And How Are They Distinct?

Mar 14, 2022

Today’s digital payment climate is moving at such a rapid pace that all businesses must consider exploring the newest payment innovations. By doing so, they have the opportunity to process payments faster, more efficiently, and inexpensively.

One payment method that businesses should consider is using the electronic check, also known as the eCheck. It offers a wealth of opportunities as well as another way to protect your bottom line. Let’s explore this further.

E-Checks Defined

In its simplest terms, an eCheck is a digital or electronic form of a paper check. It is also known as an internet check, a direct debit, and even an online check. These types of checks are processed through the Automated Clearing House or (ACH).

From the ACH, the payment is debited from the customer’s account and then placed directly into a business’s account via a payment processor. 

How eChecks Differ From Other Payments

There are many features and benefits to using eChecks as opposed to using paper checks, credit cards, and wire transfers. It is these characteristics that differentiate eChecks from any other payment method. 

Here are just some of the many benefits tied to using eChecks as a payment method for your business:

  • Take less time to process
  • Safer – use authentication, encryption, public-key cryptography, digital signatures, and Regulation E (by the Federal Reserve Board)
  • More affordable to process due to lower transfer costs
  • Attracts new customer base unwilling to use credit cards
  • Lower declined payments due to expired credit cards
  • Recurring payments easier (bank account numbers change less often)
  • If needed to process payments in bulk can transfer in batches
  • Less expensive than wire transfers
  • More secure than wire transfers (which can’t be reversed once initiated)

How To Accept eChecks 

Ready to start accepting eChecks? You will need to follow these steps for adding eChecks as another payment method for your business:

  1. The first step is to find a reliable and reputable merchant account provider or a payment gateway to accept eChecks.

Then you will need to apply for an eCheck merchant account and have the following documentation on hand: Federal Tax Identification Number (EIN), the number of years in business, and estimated processing volumes. 

  1. Once your account is approved, you will need one of the following solutions in order to process eCheck payments:
  • Payment gateway: This ensures that you can collect payments within your e-Commerce site and securely. The payment technology and the card processing networks become connected.


  • Virtual terminal: This point-of-sale (POS) system that is linked to a browser on the computer processes both in-person and over-the-phone virtual payments. 


  • Hosted payment page: This is necessary for online stores that are unable or unwilling to process payments directly on their site. PCI Compliance is provided through the right payment provider. 

Find The Best eCheck Payment Processor 

In this current, digital business environment, the best strategic move a business can make is to offer as many digital payment options for customers as possible. This will ultimately build and broaden your customer base, which will automatically transfer to a boost in revenue. 

But before any of this can happen, you must entrust your business to the best eCheck merchant account provider that has the most up-to-date technology and infrastructure to accept eCheck payments. 

With seamless integration options and an attentive and well-equipped support team, there is no reason why your business cannot succeed. 

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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