What Is An Echeck?
Echeck is an electronic form of a regular paper check. Businesses, Consumers and Financial Institutions across the United States of America use echeck as a preferred Instrument of Payment. Echeck is also called substitute check or image replacement document(IRD). An echeck or an electronic check has the same value as a regular paper check. 21st-century check act came into effect on October 28th, 2004
What Is An Echeck? – Video Explanation
The echeck payment instrument is used to debit the payer’s account and finally crediting the account of the receiver. In most of the cases, funds are credited to the receivers account in less than 5 to 6 business days. Sometimes funds may appear in the receivers account within 72 hours. You can read a detailed article about how long does it takes to clear an echeck. Businesses use same day echeck processing for faster cash flow.
Why People Use Echeck Or Electronic Check?
In today’s world time is money. People prefer to save time by utilizing the electronic form of a check that is an echeck. Merchants with bad credit and merchants from high risk Industries also use echeck. Most of the time echeck transactions are a lot cheaper than card transactions. Echeck payment gateway companies offer advanced features like
- Pay By web
- Pay By Phone
- Pay By email
- Account Verification
- Routing Number Check
- Funds Availability Check
- Email Authorization
- SMS Authorization
- Built-in Confirmation and Authorization agreement.
How To Create An Echeck?
Creating an echeck is very simple. Most of the banks offer check services to their customers. To create an echeck, the payer must have a valid USA checking account. Customers can log in to the bank account and type in the necessary information that includes
- First and Last Name of The Payer
- Address with Zip Code, City, and State
- Valid Phone Number
- Memo or Note for the Echeck Receiver or the merchant.
- Account Number
- Routing Number
- Name as it appears on Paper Check
There are a couple of things that you should keep in mind when creating the electronic check. Ensure that the account has enough funds to clear the echeck. The Payers account must be live and active. The nine-digit routing number should be the same as it appears on the checking account.
The bank account number should be the same as it is on the paper check. Once you fill these pieces of information, you will be asked to decide on which date you want to initiate the transaction.
Many echeck companies offer highly advanced user interface. These solutions are replacing the need of international high risk processing accounts in canada and other parts of the world. If you bank accepts USD checks then you can use this solution.