Payments can be a pain point for any business. That’s why companies are increasingly turning to digital methods to effortlessly receive funds while giving customers the flexibility to pay in the best ways for them.
One highly popular choice: eChecks. This simple form of payment is faster and more convenient than paper checks and offers lower fees than credit card payments.
In this post, we’ll explain how eCheck payments work and how they can benefit you.
What is an eCheck?
An eCheck—also known as an electronic check—is a digital version of a paper check. It contains all the same information as a traditional check, such as the account number and payment amount. The difference is that the data is captured and transmitted electronically from a bank account to the merchant’s bank account.
How do eChecks work?
With eChecks, a payer provides their bank account information, which the payee’s bank verifies to ensure there are sufficient funds. Once authorized, the payment is initiated and securely processed through a central financial network called the Automated Clearing House (ACH). Even though the process takes at…