What Is An eCheck?
An eCheck, or electronic check, is a form of online payment where money is electronically transferred from the payer’s checking account over the Automatic Clearing House (ACH) Network and deposited into the payee’s checking account. ACH is also considered a type of Electronic Funds Transfer (EFT), which is the process of moving of funds between bank accounts and is regulated by the National Automated Clearing House Association (NACHA).
How Does eCheck Work?
Much like writing a paper check, an eCheck uses information found on the buyer’s check to process a payment. However, the transaction is carried out as an electronic funds transfer instead of being manually processed by a bank and is therefore faster for both parties. Instead of manually filling out a paper check and sending it to CANN & Co., today’s technology allows the process to happen electronically, saving both time as well as paper waste – and we at CANN & Co. always appreciate a Sustainable option. Once approved by the customer, money is electronically transferred to CANN & Co. from the customer’s checking account over the ACH network.
In relation to an online purchase, an eCheck is an electronic payment funded by the customer’s bank account. Using an ACH merchant account, once a customer approves the eCheck transaction, they are approving the electronic payment from their account for products they have chosen to purchase.
There are two ways you can send an eCheck payment:
- Using CANN & Co.’s online eCheck form you fill in your checking account number and routing number, as well as the amount of payment. By clicking “Submit” you are authorizing payment to CANN & Co. from your checking account.
- If you prefer to pay by phone, call toll free 844-293-CANN (2266). A CANN & Co. Associate will gladly assist you in executing the transaction. For security of your data and personal information, the conversation will be recorded. The customer service representative will ask for your checking account and routing numbers and input these numbers, along with the payment amount into our secure online payment terminal.
Whichever option you choose, the transmission of your data is encrypted using our secure payment gateway to the ACH network. The ACH Network uses fraud prevention tools to validate the person’s identity. Once validated, the customer authorizes the transaction and the funds are transferred from their bank account and delivered to CANN & Co.
What Are Key Features And Benefits Of eChecks?
A key feature of eChecks is that they are processed similar to paper checks and are governed by the same laws, but offer greater security and more features, such as authentication and digital signatures. They are typically processed much more rapidly than paper checks.
The use of the ACH network to facilitate electronic transfers of money (such as eCheck) has increased the efficiency and timeliness of business transactions. National Automated Clearing House Association (NACHA) rules state that average ACH debit transactions settle within one business day. Changes to NACHA’s operating rules will expand access to same-day ACH transactions, which will allow for same-day settlement of most, if not all, ACH transactions as of September 2020.
Are eChecks Secure?
eChecks processed through the ACH network is one of the most secure methods of payment around and are backed by banking institutions and the United States Treasury. Since the early days of online fund transfers, electronic encryption has greatly improved, preventing fraud and data theft.
For customers, transferring funds electronically is safer than a paper check, since there is no document that gets handled, and far fewer individuals will have access to their account information. If a fraudulent charge is made to an account, customers are protected by Federal Reserve Regulation E (Reg. E), which requires banks to allow a consumer to revoke a payment if they consider it fraudulent. They can do this within 60 days of their bank statement on which the charge occurred.
What Is the Difference Between eChecks And Credit/Debit Card Payments?
For all intents and purposes, eChecks are the same as paper checks. When a customer opts to pay by eCheck, only their account and routing number entered are validated; money is not actually deducted from their account at the time of payment, much like a paper check.
Credit and debit purchases occur in real time and thus, the funds are deducted almost instantaneously.