Electronic checks remain a popular payment method for many businesses and consumers, despite some common misconceptions about how they work. Here are some common questions concerning echecks and the answers to those queries.
6 Frequently Asked Questions About eChecks
1. What is an eCheck?
An eCheck is a payment option that allows a customer to transfer funds electronically from their bank account to pay for goods or services.
2. eCheck payments: how does it work?
To make an eCheck payment, a customer provides the merchant with the routing number and account number from their checking account. The merchant then debits your account electronically and has immediate access to the money in their checking account.
3. What is ACH?
ACH stands for Automated Clearing House, the network that processes all electronic payments in the U.S. eChecks is a type of payment processed by this network.
The checks that are used for electronic check payments are also referred to as ACH debits, which were previously called check 21.
ACH transfers are typically initiated by the businesses and they go directly from one bank account to another.
4. Why are eChecks considered faster & safer than credit cards?
Because eChecks don’t involve cards or personal identification numbers (PIN), they are often considered safer and more convenient than payments made with a credit card. And since funds are transferred electronically, eChecks usually don’t require additional processing time.
5. How long before an electronic check clears?
Once the customer completes the transaction, the payment processor will then take some time (usually between 24-48 hours) to process the payment before sending it on its way electronically to the merchant or vendor that’s being paid off.
6. Can I use my eCheck at any place?
Not exactly; some shops only accept cash or other forms of payment, so you need to be aware of them. However, most online stores will take this form of payment, and you won’t have any problems using it.
There are plenty of reasons to use an eCheck. It’s a lot faster than using a bank check. No more waiting for the mail. No more trips to the bank. And you can use it for several online purchases, just like a credit card.
But like any debit card, you want to keep track of your balance and make sure there is enough money in your account to cover the purchase.
Author Bio:- Blair Thomas has been a music producer, bouncer, screenwriter and, for over a decade, the proud Co-Founder of eMerchantBroker, the county’s highest-rated high-risk merchant account processor. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favourite books.