check processing companies

Check processing companies

11 Popular QuestionsAbout eChecks

An eCheck (electronic check) is a form of online payment allowing the money to electronically be withdrawn from the payer’s checking account, transferred over the ACH network, and deposited into the payee’s checking account.

Businesses with an ACH merchant account can withdraw payments for goods/services directly from their customer’s bank account.The recipient should receive the money within 3-6 business days.

How Does eCheck Processing Work?

Electronic check processing can be compared to paper check processing, only it’s faster. The process happens electronically and requires the following main steps:

  • Request authorization
  • Payment setup
  • Finalize and aubmit
  • Payment confirmation and funds deposite

How to Get Started with eChecks?

To implement eCheck conversion quickly and easily, you should:

  • Apply to reputable check processing companies that’ll make it easy to align your current business processes with your new electronic processing system, export customer data, and integrate your new system with your business management software
  • Inform your customers that you’ll begin using electronic check conversion

Are ACH and EFT the Same Thing as eCheck?

EFT is Electronic Funds Transfer, which includes many types of financial transfers:

  • Wire transfers
  • Direct deposits
  • Electronic benefits payments
  • ACH disbursements, and more

ACH is Automated Clearing House, the electronic network used by US financial institutions. It provides the infrastructure used by payment processing companies.

An eCheck is a type of electronic funds transfer (EFT) that uses the Automated Clearing House (ACH) network for payment processing.

What Types of Payments Can eChecks Be Used for?

eCheck payments are popular for high-cost items like rent, mortgage or car payments, and high-cost monthly fees like legal retainers and fitness memberships.

Can eChecksBe Used for Recurring Payments?

eChecks are among the most popular types of recurring payment.

How Long Do eCheckClearing and Processing Take?

The eCheck clearing process depends on the provider. As a rule, funds are verified within 24 – 48 hours of the transaction being initiated.

How to Send an eCheck Payment?

The person to whom you’re sending the payment should have an ACH merchant account. These are the ways you can use to send an eCheck payment:

  • You get an online payment form from the payee, fill in your checking account number and routing number, as well as the amount of payment
  • The payee can ask for your checking account and routing numbers by making a call on a recorded phone line

How Much Does eCheck processing Cost?

eCheck processing fees depend on the provider of eCheck merchant accounts. The average fee is $0.30 – $1.50 per eCheck transaction.

How to Get an eCheck Merchant Account?

Signing up for an eCheck or ACH merchant account is similar to getting a credit card merchant account.You’ll be required to provide the following information:

  • Federal Tax ID
  • Years in business
  • Estimated processing volumes

What Are the Benefits of eChecks?

Electronic checks offer the following benefits:

  • eChecks help you save time and reduce hassle for your staff
  • Reduce processing costs by up to 60%
  • Receive funds sooner
  • Increase sales
  • Work smarter and greener
  • Decrease errors and fraud

Are cChecks Secure?

Electronic checks protect your business and your customers. eCheck conversion is among the most secure payment methods in the electronic payment processing industry because it uses the latest information protection features:

  • Authentication
  • Duplicate detection
  • Encryption

To get the best payment processing solutions for your business, take the time to research the industry well and find the right processor to turn to.

Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2011. His passions include writing/producing music, and travel. eMerchantBroker is America’s No. 1 check processing company, serving both traditional and high-risk merchants.