The goal of every business is to ensure that every payment made is done as seamlessly and securely as possible. The day to day operations of running a business has its own complexities. Therefore, having to fill out and maili each and every check only robs the business of precious time and money. Worse, not only does it take a considerable amount of time to write the check, it also takes several days for the check to clear as well.
Businesses who seek a more efficient way of handling their payment processes can look no further than eChecks. An eCheck is an electronic version of a physical check.
The only distinction between an eCheck and a physical check is that the eCheck must go through the automatic clearing house network (ACH) in order to verify that the payment is secure. The most critical role that an ACH network offers is an extra layer of security, ensuring that the eCheck is not subjected to fraudulent activity.
The Benefits Of Using An eCheck
There are many benefits to using eChecks. One of the most important is the lower cost. Processing fees for eChecks are considerably lower than processing credit cards. Payments can also be quicker as the process of writing out a check and mailing it is completely eliminated.
With eChecks, electronic check services verify whether or not there is enough funds in the account before the payment is confirmed. This eliminates the occurrence of bounced checks and it translates to consistent payments and fewer fees.
Security is another vital feature as eChecks are processed through the highly secured ACH network. It is virtually impossible for someone to send a fraudulent check.
How To Send An eCheck
In order for a business to send an eCheck, they would need to follow these steps:
- Find a service that enables you to send eChecks.
A business must first find an eCheck service or bank that allows the sending of eChecks. Institutions that allow eCheck transfers include internet banks, national banks, and eCheck vendors.
- Seek authorization.
Before you can send an eCheck, you first must be authorized to do so by the recipient. This authorization requires that they validate the request for a payment by way of an eCheck. An online payment form or an email/phone conversation will suffice.
- Ensure you have sufficient funds.
One of the most beneficial features of eChecks is its ability to verify sufficient funds in order to process the payment. By taking care of this step prior to processing the payment, the check is guaranteed not to bounce. Therefore, ensure that you have adequate funds before completing the payment.
- Submit banking information.
Once you have received the authorization to send an eCheck, you can begin entering your banking information. Just like setting up a direct deposit account, before you send an eCheck, you will need to submit your account number and routing number.
- Complete the payment.
Once all the banking information is entered correctly, you are free to submit the eCheck for payment. The eCheck will then be passed through the ACH network, to ensure that it is processed securely.
Shortly, you will receive a receipt and a notification that the eCheck is being processed. You can also monitor the eCheck to check the status and ensure all is running seamlessly. Although the eCheck can clear in one day, the time it takes for the funds to be deposited into someone else’s account can take between 3 to 5 days.
Optimizing The Payment Process
Without question there are countless benefits to using eChecks to process payments in your business. By eliminating the time-wasting process of writing out and mailing checks, your organization will gain security, time, and cost effectiveness, allowing you to operate at the most optimum level.