Will An Echeck Take Money Out Of My Account Instantly. – Good Question. Lets see if it is possible.
In recent years Echeck has started giving fierce competition to credit card processing companies in the United States Of America. Many merchants have already begun to use electronic check for one time as well as reoccurring payments. A majority of these merchants are from High-Risk Industries like Peptides, Online Pharmacy, Health Supplements, Web Design and Coaching to name a few. , the payment processing solution, is becoming popular merchants still have few basic questions. Sometimes customers ask us “Will An Echeck Take Money Out Of My Account Instantly.”. The answer to this question is no. An electronic check is different from credit cards. Echecks cannot take the money out of the payer’s bank account instantly. It usually involves a timeline of 1-2 business days. In the case of ACH, the amount goes on hold within a few hours of batch file submission. Let’s look at how funds are settled.
Your customers can instantly place the order on your website by clicking on the buy now button, but this does not mean that the transaction will happen immediately from bank to bank. Echeck transaction information needs to be submitted to the ACH processing network. But before this is done the system also need to validate details like the Account Number, Routing Number and availability of funds. After verifying all the information, the processing company will submit the transaction information into the ACH network usually at the end of the day in batch mode. Some processors may offer batch files twice a day.
After successfully submitting the ACH transaction the third-party ACH processor will get access to the funds within 24 to 48 working hours. The processor will deduct the transaction charges and then wire the funds to the merchants business bank account.
If you want to stop an echeck transaction then contact the merchant. This is the best way to stop the checks being run. Off course you can also contact the bank and make a stop payment request.
To get more details about how you can apply for ACH and an echeck merchant account for your business send us an email on [email protected].