Despite the advances made in technology, and how they’ve impacted financial and administrative activities, there are still some consumers and businesses that are unaware of the benefits that come from electronic financial transactions. One of the biggest perks is, of course the savings in time that come with digital processing.
When using an “automated clearing house,” rather than sending a cheque through the mail, or wiring money through a series of banks, the ACH system processes entire batches of transactions at the end of the business day, dealing directly with the bank accounts involved for speedy process that quickly ensures funds get to their destination quickly, efficiently, and, perhaps most important of all, safely.
If there is a payment or other transaction that occurs at a set, regular interval, such as a monthly payment, a lot of time and effort can be saved simply by automating the monthly payment process. In such a scenario, no one is required to initiate and monitor a transaction, as the banking systems will automatically handle the payment and transfer of funds. This is a very efficient method of handling transaction as neither party has to initiate or maintain any administrative activities, and, provided the funds are available to transfer, it’s much faster and more reliable than traditional paper checks, and other payment methods, since a scheduled payment system allows for people to plan and account for these transactions in their finances.
While the old fashioned paper check is increasingly becoming a thing of the past, the immense legal and financial framework that surrounds it is still in place, offering much security and legal protection. An electronic or “eCheck” is the 21st century evolution of this payment method, and is secure enough that the United States Treasury actively uses it to transact funds. The eCheck benefits from all the banking and financial protection of a traditional check, but avoids the long waits of physical delivery through mail or courier that a physical check requires.
There are numerous ways that online transaction and electronic commerce have decreased the amount of time it takes for funding to occur. But it still means doing a bit of research and assessing your specific, individual needs to see which method will work best for you.