eCheck Payment Processing: Answers to Your Questions
Modern technology has turned a paper check into an electronic check or eCheck. Do you have interest in eCheck payment processing? Questions is what should you know about electronic check payment processing? Just keep on reading this article and you’ll know.
An eCheck is a type of payment via the Internet or other data network. It’s will perform the same function as a conventional paper check. The eChecks boast a higher level of security as compared to standard paper checks. Their increased security is based on authentication, public key cryptography, digital signatures, encryption, and other features.
An electronic check makes up part of the larger electronic banking field and a transaction subset called electronic fund transfers or EFTs. The so-called direct deposit system represents one of the commonly used versions of the electronic check.
Usage of eChecks
You can use eChecks to make a payment for any transaction that can be cover by a paper check. The eChecks are governed by the same laws that develop the paper checks. As for costs, these are significantly lower as compared to those of paper checks.
For merchant or service providers, hence eCheck funds are transfer electronically from a customer/client’s bank account right into their bank account. This is being completed through the Federal Reserve Bank’s Automated Clearing House (ACH) system.
To process an eCheck, you should request authorization, then set up a payment, finalize and submit. Finally confirm the payment, and the funds will be deposit to your account. If you’re interested in eCheck payment processing, apply to a respectable payment processing company that offers this type of payment processing. With a reliable and experienced specialist in the field, you can enjoy the lowest rates and the best terms in the industry.
Popular usage of eChecks
By the way, eCheck payments are popular for high-cost items like rent, mortgage or car payments. Also, they’re popular for high-cost monthly fees like legal retainers and fitness memberships. The eChecks are among the most popular types of recurring payment.
Funds get generally verified within 24-48 hours from the moment you initiate the transaction. The eCheck merchant account providers charge different fees for eCheck processing. If you want to get an eCheck merchant account for your business, be ready to provide Federal Tax ID, your time in business, as well as the estimated processing volumes.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants by offering eCheck payment processing and much more. His passions include producing music and traveling.