The Brief Guide Of eCheck Payment Processing
An eCheck payment is a type of electronic transaction that can be sent directly from one individual’s bank account to another. One of the primary advantages of debiting and crediting funds with an eCheck payment is the speed at which these transactions are processed. Below you can find a brief guide on electronic check payment processing as well as the benefits of using eChecks for your business.
What Is An eCheck?
eChecks are electronic versions of paper checks that are transferred from your checking account and made payable to someone else. They can be processed in seconds, and they allow you to pay without giving out sensitive financial details like credit card numbers, etc.
The term “eCheck” itself is derived from the fact that this mode of payment actually works just like paper checks and direct deposits. However, it has been built with modern technology, making it much faster and more cost-effective than paper check payments. To incorporate online check payment processing into your business, you can use companies that provide different industries with payment processing solutions.
eChecks Vs. ACH Transfers For Payment Processing
ACH transfers are other popular payment methods businesses use to process payments quickly. The main difference between these two ways of transferring money is that ACH transfers can take up to 3 days to get processed, while eChecks only take a few seconds.
Like many financial transactions, eChecks are sent from one bank account to another online or through a mobile app on your phone or computer. Once the funds are deposited into your recipient’s account, they will be processed by the recipient’s bank, and the funds will appear in their account in a few minutes.
Benefits Of Using eChecks For Payment Processing
The main benefits of using eChecks for business and personal payments are as follows.
Faster Than Paper Checks
The main benefit of using eChecks is that they are processed much faster than paper checks and credits. Of course, it depends on your bank’s policies, so don’t expect eCheck processing to immediately appear in your recipient’s account as soon as you send them out.
Usually, it takes a few minutes for the funds to be transferred from one bank account to another, so don’t worry if you do not see the deposit right away. That is why business owners who use electronic payments don’t have to deal with time-consuming check clearing processes, and bill paying can be easier.
More Secure Than Paper Checks
Another great advantage of using eChecks is that they are much more secure than paper checks. The main reason why this is the case is that it allows you to send funds electronically, which makes it very difficult to alter.
When using eChecks, your account number and entire electronic check payment are transmitted from one bank account to another. This makes it difficult for anyone to clone your checks or hack the check itself, which means that the funds will be made available instantly in your recipient’s account.
Quick Access To Status Of Check
Another benefit of using eChecks is that you will always know the status of your payment. When you use paper checks and credit card payments, you need to wait for them to be processed so that you have access to your account details.
When you use eChecks, however, the funds will be directly deposited into your recipient’s account, and thus their bank statement will instantly indicate the state of the funds. This gives you access to know whether or not they received the payment or if there was an error during processing.
Cheaper Processing Fees Compared To Credit Cards
One more benefit might seem a bit surprising; however, it’s true. Most banks charge fewer fees for processing eChecks, which means that your business can save money by using this payment method.
Of course, there are some bank fees that you will need to pay for using eChecks. However, there is a good chance that you will be able to get away with paying lower fees than with credit card payments.
Reduce The Risk Of Fraud
Unlike credit cards or paper checks, eChecks are not susceptible to cloning or fraud. You will be able to easily determine whether or not the payment has been processed by checking your bank statement with the recipient’s bank statement. If the funds are missing, you will know exactly where they have gone.
Alternative Payment Methods
There are also some other payment methods that you can also use in your business in order to give customers more options:
- Realtime Bank Transfers
- Direct Debit
- Domestic Card Schemes
- Electronic Wallets
- Mobile Wallets
- Pass-Through Wallets
- Buy-Now-Pay-Later (BNPL)
One of the most reliable payment providers on the market is Solidgate. It is a fintech company that offers various businesses payment processing solutions for no-fuss online shopping. This payment solution and its unified API can be implemented by any business to streamline its payment infrastructure. This secure, highly adaptable solution has global coverage and hundreds of alternative payment methods.
This fintech company will help your business to boost revenue, optimize payments, and create innovative products that enable direct acquiring in every major market, over 150 currencies, and a wide suite of local payment methods.
The Bottom Line
eChecks are great options for small business owners who want to make their business more efficient by providing faster and more secure transactions. You can use your bank account number to collect payments rather than giving out sensitive credit card numbers, which will save you money in the long run.
When you use eChecks, you will be able to save time and money by processing payments much faster and using a secure payment method. So don’t hesitate to use eChecks for your business or personal payments.