What Does Uncleared Echeck Mean?

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What does uncleared echeck mean ?

UNDERSTANDING THE UNCLEARED CHECK MEANING

Echeck is an electronic form of payment processing . There are mainly few terminologies used for the same as listed below

  1. E-check – This Term is used in General
  2. Check 21 – Pull Method of e-check transaction
  3. Check 22 – Push Method of e-check Transaction
  4. ICL – Image Cash Letter Transaction
  5. Check By phone – The Merchant collects the Payment information over the phone

The e-check transaction works on the substitute check model . The Payer confirms that he is willing to make the payment of the Value mentioned over the E-check. Various Authentication method enable the check verification for the below mentioned elements

  1. Billing Information – The billing address should match as per the Payers account info
  2. Account Number – The Account Number Needs to Be Valid
  3. Account Status – Account Needs to be open and Active
  4. Routing Number – The Routing Number of the bank branch should be valid
  5. Check Number – Some processors do need a check number to be placed on the online form
  6. Availability of funds – Funds to clear the check must be available in the payers account
  7. The validity of check in terms of Days – E-checks are valid for a specified period of time like any regular check
  8. Technical Errors – Some declines might occur if there is some error on the e-check processing system

In case if any of the above are not correct the e-check will not be realized that means the amount will not move from the buyers account to the sellers account. Echecks can be compared to very high risk merchant accounts. Merchants can use echeck solutions till the time they have access to a bank account. Merchants usually implement various fraud prevention measures to reduce bad checks and NSF issues.

Bankim Chandra

Bankim Chandra

Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.

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