What are E-Checks and Why do I Need to Accept Them?
An e-check is a well-established payment instrument that manages to combine speed, security and processing efficiency for transactions that take place through an electronic medium. Based on the well-developed legal infrastructure and business processes that are associated with regular paper checks, e-checks are the only electronic payment mechanism that is currently used by the US Treasury to make payments over the Internet.
It is currently a highly utilized online payment method, and it is supported by practically every major payment gateway. As of 2017, it is one of the cheapest and most secure ways of paying directly from your bank account to another party.
What are the features of the e-check?
When it comes to features, you have to keep in mind that the e-check is an electronic version of a paper check. As such, it contains all of the same information as a paper check. It is also based on the same legal framework. The e-check is available for use in remote transactions, and enhances the features and functions of a checking account. However, an e-check is an improvement on the paper check because of the extra value-added information it can provide. So basically, an e-check is a secure way to make an online transaction directly from your banking or checking account.
How does it work?
Using an e-check is fairly straightforward. It starts with the buyer writing the e-check, and the e-check being transferred to the seller. The seller then “deposits” the electronic check, receiving credit while the bank clears the check with the buyer’s bank. Once the e-check is validated, the buyer’s bank charges the buyer’s checking account for the agreed upon sum. Due to its electronic nature, an e-check transaction is much faster than a transaction with a regular paper check.
Why use e-checks?
As a vendor, you can already see the benefits of accepting an e-check. Accepting e-checks will increase the speed of transactions, and could potentially enlarge your customer base. However, that is just the tip of the iceberg. E-checks allow you to conduct bank transactions safely over the Internet. They reduce fraud losses for all parties involved, and they have an automatic verification process. They also come with all of the features of traditional checking such as easy reconciliation, and they have added capabilities of their own, such as effective dating.
Yes! You should accept e-checks as payment
All in all, e-checks are a great addition to any vendor’s arsenal of payment methods. It is especially useful for transactions over the internet for clients who would prefer to use their checking accounts, instead of debit or credit cards. Your company could miss out on a lot of business by foregoing e-checks. Start up now and visit charge.com, or call them today on 1-888-924-2743.