Understanding How e-Check Processing Works
The full form of eCheck Processing is Electronic Check Processing. This is currently changing the rules of the game. eCheck Processing enables businesses to gather information about a paper check and also to electronically collect money from a bank account. This is done by using the ACH Network which is also used for any direct deposits or direct payments. Let us now understand how the eCheck Processing works.
a) Notification: When your business is collecting physical paper checks, it is necessary that you inform your customers that the paper checks will be converted into an electronic form. Normally this is done in case of invoices. By following this process, the customer will receive a notification of the transaction details via email, immediately upon the receipt of the invoice. If you are using a quality payment solution, then this will be done automatically for your business.
b) Collection and Conversion: The gathered paper checks are converted into a one time ACH based electronic payment. If your business is equipped with check scanners, this process can be done quickly and efficiently. These checks are kept for a period of two years as a proof of receipt of payment.
c) Processing: At this stage, all the payment information is electronically transferred to a processor and from there to another bank or financial institution using the secure ACH Network. Within twenty four hours, your customer’s bank account will reflect a pending debit. The same will get credited into your bank account within seventy two hours.
For a business house that is looking for a quicker and less expensive way to gather payments, eCheck processing is the best solution.
