Your 8 Questions Answered About ECheck Payments

Dec 28, 2021

As we continue to move into a more “electronic world” the speed at which payments take place has become vitally important. Echecks or electronic checks allow businesses and customers to make payments quickly. 

Some vendors and customers are not comfortable providing their banking information for wire transfers or ACH payments, but they still want to receive their payments in a timely manner. With eChecks, not only will they receive their funds right away, they can control the receiving, processing, and depositing of that payment.

E-checks are a form of electronic payment that resembles a paper check but in digital form. By using eChecks, merchants and vendors alike can receive their funds quickly as opposed to waiting for days to receive a paper check through the mail. 

Here are some commonly posed questions about eChecks.

Your A’s To Your Q’s About eChecks

1.  What Is An eCheck?

Echecks, also referred to as electronic checks, are a type of payment where funds are drawn electronically from a sender’s checking account. It is then deposited into the receiver’s checking account. 

The funds are transferred over the ACH (Automated Clearing House) network. The ACH network is an electronic funds transfer system that processes financial transactions for e-commerce customers, businesses, and individuals. 

2.  How Does It Work?

Electronic check processing works a bit similar to paper check processing. The difference is that eCheck processing is faster, more eco-friendly, and cost-efficient. You don’t waste time filling out a check and you definitely don’t waste paper. The client simply fills in and processes the eCheck electronically. 

3.  How Do You Process An eCheck?

  • Request Authorization: To process an eCheck transaction, a business needs to request authorization. The authorization request can be a signed order form, an online payment form, or an agreement over the phone. 
  • Set Up Payment: Once the authorization is complete, a payment gateway (online payment processing software) accepts the information on the payment. 
  • Requiring ACH: Once the payment gateway receives the data on the payment, the ACH transaction process begins.
  • Confirming The Payment: Here, the funds are automatically withdrawn from the customer’s bank account. When the payment is completed, the software sends a final receipt to the client. 

4.  When Does A Merchant Receive Funds From An eCheck Payment?

Depending on the payment service provider or (PSP), it normally takes up to 48 hours. If the payer has sufficient funds in their checking account, the merchant can receive their funds within 3 to 7 business days. 

5.  What Are The Costs Of Sending An eCheck?

To process an eCheck, do note that different businesses will charge different fees. On average, an eCheck transaction fee can range from $0.30 to $1.50.

6.  What Are The Benefits Of eChecks?

The most beneficial aspect of accepting eChecks over credit cards is that eCheck processing fees are lower. Here are additional benefits:

  • High-speed processing
  • Greater accuracy in processing
  • Environmentally friendly
  • Secure

7.  What Do I Need To Begin Accepting eChecks?

A business must work with a payment processor or payment gateway, as well as a financial institution that can enable and support these types of transactions. 

8. What Are The Differences Between eChecks And Credit Card Payments?

The most notable difference is that eChecks use ACH to transfer funds instead of using credit card networks. This makes processing fees considerably lower.

For eCheck acceptance, there are no credit card interchange fees. Fees can be as low as 10 cents per transaction. This is highly beneficial for businesses that accept recurring or large payments. 

Closing Thoughts

There is a growing interest in eChecks which could indicate bigger shifts towards more electronic payment options as opposed to more traditional payment methods. It would be interesting to see how eCheck adoptions continue to evolve in the future

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

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat