Electronic checks are the one of the most popular payment methods in the USA. In any US business, Echeck is widely used for accepting payments. Echeck is an electronic substitute of a paper check. Echeck contains the same information as a paper based check. Many people have some doubts that are echecks safe for online purchases. Echeck can be used within the United States. So, practically this question is not possible. But somehow we are trying to answer your question. While transaction in Echeck processing, the bank account of the payer must be present in the US itself. If the payer does not have an account in the US, the overseas purchase is not possible.
Some benefits of Echeck:
1. Electronic check relies on the ACH processor. ACH processor is a reliable system which manages direct deposits in bank accounts.
2. Processing cost of Echeck is low as compared to physical checks and credit cards.
3. Echeck reduces the use of paper checks which promotes a paperless transaction.
4. An electronic automated process minimizes the error.
5. Some third party ACH processing companies do support Overseas merchants on a case by case basis.
How Echeck Works For Overseas Merchant?
Echeck transaction is a simple process. Payer will write a check for a payee. After that payer will send that check to a payee by any means of an electronic device. A device can be a scanner, mobile phone, etc. The payee will grab the information about payment amount and banking details and go to the bank. The information will be sent to the ACH system. ACH processor will process the details. ACH system will check the account of the payee whether he has enough money or not in his account. If the requesting money by payer is not sufficient the transaction will be declined. If the amount is sufficient, the transaction will be successful. The amount will be sent to the payer account within 2-3 business days. To make things easy merchants can take the assistance of Third Party ACH processors. These processing companies may assist local as well as overseas merchants. These processors may also onboard merchants from few high risk industries.