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An eCheck is a simple concept; it’s an electronic version of a paper check. In recent years, paper checks have been rapidly phased out and replaced with a revolutionary new technology: the eCheck. In this article, we’ll explain what eChecks are, how they work, and the benefits they can have for your business.
Looking for eChecks or ACH Payment Processing?
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What Are eChecks?
An eCheck, also known as an online check or direct debit, is an electronic payment that uses ACH (Automated Clearing House) to move funds from one customer’s checking account into another merchant’s account. eChecks often take several days to be processed and will not be affected unless the appropriate funds are in the payer’s bank account.
How Do eChecks Work?
Like paper checks, a business requires the customer’s checking account and bank routing numbers to send or accept an electronic check. This information can be provided in several confidential ways, including via signed paper, over the phone, or online through a secure page. Once a business has the required information, its bank can communicate directly with the customer’s bank to process the transaction.
The actual debit transaction happens with the help of ACH. A receiving depository financial institution (RDFI) receives the initial request through the ACH network. After verifying that the funds exist in the payer’s bank account, the ACH network debits the customer’s account and credits the receiver’s account.
What Are the Benefits of eChecks for My Business?
The benefits of eChecks for any business are countless. Here are just a few:
- eChecks save businesses money by avoiding interchange fees. If you frequently accept large electronic payments, eChecks are your best bet for cash savings.
- eChecks save time and resources. Paper checks mean dealing with mailing, tracking, and manual processing. With eChecks, everything is done online with the click of a button.
- eChecks provide top-notch security. Paper checks are vulnerable to fraud, whereas eChecks operate through a safe and secure web platform within which banks assess the sender’s identity, receiver, and the validity of the check itself.
eChecks are an efficient, cost-effective, and safe choice for any small or medium-sized business when it comes to online banking. Get in touch with us today to learn more about the opportunities Kapital Solutions can provide your business via our Kapcharge platform! eChecks save you time, money, and resources, and offer a safe and secure platform for banking.
Looking for eChecks or ACH Payment Processing?
