In today’s uncertain times, increasing numbers of businesses are relying on technology to collect payments from customers and clients. One of those methods of payment growing in popularity today are eChecks. This raises an important question: Are eChecks safe?
Successful business owners have learned that with the evolution of technology, it is now easier than ever to accept different forms of payment electronically. Even so, security and safety still remain a top concern.
How Do eChecks Work?
“eCheck” is short for “electronic check.” Just like physical checks, when exchanged for payment, eChecks are processed and approved (or declined if there is insufficient funds). The funds are then deposited into the recipient’s bank account, just as if they had deposited a paper check. But because they are encrypted and not printed on paper, they are much more difficult to intercept or alter, as compared with paper checks. There are also safeguards to prevent an incomplete check from being accepted that paper checks don’t have, as well as fraud safeguards that paper checks also lack.
Benefits Of eChecks
Are eChecks safe? Yes, they are. But security is only one of the many benefits that eChecks offer.
They can be accepted remotely: This is the main benefit of eChecks, of course. Because only information, and not paper, has to change hands, eChecks can be sent online or over the phone. This makes accepting eChecks an ideal payment method for customers who can’t use a credit card or who prefer not to do so. It also makes accepting eChecks an excellent option for businesses who cannot be approved to accept credit cards.
Great for recurring payments: Rather than customers schedule a time of day to send out a check by mail every month, they can set up a recurring eCheck payment, which ensures that the business will be paid on time every month (or week or year) without having to chase down payments.
Chargebacks are extremely rare: It is much more difficult for a customer to dispute a payment made by an eCheck, as compared with the chargeback process for credit card payments. Although it is possible, in very rare instances, for a payment made by a check to be “clawed back,” it is extremely difficult, and this option is available only in a narrow set of circumstances.
As a business that is eCheck safe, you can expect transactions to be processed securely and safely. With the help of an eCheck processing system, you can accept them from customers and clients that make recurring payments. If you are still wrestling with the idea of using eChecks, Charge.com can help.