An e-check (electronic check) is a payment method that combines the convenience, speed, and security of other electronic payment systems with the well-developed business practice and legal structures associated with paper checks.
How do e-check payments work?
E-checks work much the same way as paper checks. Usually done online, the check writer completes the necessary payment fields during the checkout process. Once the payment is submitted, the electronic check is processed the same as paper checks, and the payee’s bank clears the check into the recipient’s account. The paying bank then validates the e-check and charges the customer’s account.
Accepting e-checks makes banking easier for you––saving time and money, and cutting out unnecessary visits to the bank. It also protects your company from check fraud.
Pre-approved checks ensure that money ends up in the merchant’s designated bank account, creating peace of mind with cash flow regardless of the size of your business.
Businesses accepting e-check payments benefit from:
- Offering customers additional payment avenues
- Increased security
- Savings over credit card fees
- Increased on-time cash flow