E check processing involves converting a traditional paper check into an electronic transfer, or e check, in order to more quickly transfer funds from one person’s account into another using the automated clearing house system, or ACH. This process is not only a much faster way of transferring funds, but it is also much less expensive and a lot more secure. Rather than having to physically take a paper check to a bank and have it processed, it is possible to use an e check to transfer money electronically. This process has become much more widely accepted over the last few years as more and more retailers have come to realize the benefits of using e checks.
In the past, once the retailer received a paper check from a customer they would usually hang onto it for a few days before taking a batch of checks to their bank for deposit. That bank would then go through the process of cashing the check and depositing the money into the retailers account. This process could take several days and possibly even a week or more depending on how many banks were involved and how many checks were being deposited. In the time that it took for the whole operation to go from beginning to end it was possible for a customer’s payment processing account to become overdrawn thus making the check that the retailer was trying to deposit unable to be cash.
Using an e check system, however, the funds are deposited usually overnight and sometimes might even be transferred within a matter of hours. This cuts down on the possibility of overdrafts and fraud. The e check system works in a similar way to most credit and debit card transactions. The funds are transferred almost immediately or a hold is put on the customer’s account for the amount of the check until the funds can be transferred. Anyone that is utilized direct deposit in lieu of typical payroll checks has already experience the benefits presented by the check processing.
Typically, funds deposited from an e check are available for withdrawal almost immediately. It is also much less expensive since the cost of processing checks electronically is about a third of the cost of the old way of doing it. Many retailers using an e check processing system do not even keep the original paper check, preferring instead to return it to the customer immediately after it has been entered into the system. E check processing definitely puts a new twist on a very old way of making payments. Let us at National Processing
help you find the best solution for your online payments.