Does my checkbook image matter3/25/2023 ![]() ![]() In order to send an electronic payment, verify that the business or person you’re sending money to has an ACH merchant account. If the payer has the funds available in their checking account, the transaction is typically cleared within three to five business days and the funds are moved to the payee’s account. Generally, funds are verified within 24 to 48 hours of the transaction being initiated. The eCheck clearing process varies slightly between providers, so eCheck processing time varies. How Long Does it Take for an eCheck to Clear? This gives them the ability to automatically deduct rent from their tenant’s checking account on a certain day each month. You might have also heard of the term “recurring ACH payment” or “direct debit” which is the same as a recurring eCheck payment.įor example, property managers will often ask tenants to fill out a recurring eCheck rent payment form. Can I Use eChecks for Recurring Payments?ĮChecks are actually one of the most popular types of recurring payment. Since merchants pay a smaller fee to process eCheck payments than they do to process credit card payments, it’s common to accept eCheck payments for high-cost items such as rent, mortgage, or car payments, and high-cost monthly fees such as legal retainers or fitness memberships. ![]() What Types of Payments Can You Make with eChecks This is all done similar to paper check processing, just electronically. With an eCheck, the money is electronically withdrawn from the payer’s account, sent via the ACH network to the payee’s banking institution, and then electronically deposited into the payee’s account. The best way to explain the similarities and differences of ACH, EFT, and eCheck is that an eCheck is a type of electronic funds transfer (EFT) that uses the Automated Clearing House (ACH) network to process the payment. ![]() Do ACH and EFT Mean the Same as eCheck?ĮFT stands for “Electronic Funds Transfer.” This all-encompassing term includes many types of financial transfers, including:ĪCH stands for “Automated Clearing House.” As noted, this is the electronic network used by financial institutions in the United States that provides infrastructure for payment processing companies. Learn all the ways to accept online paymentsĬlick here to access the FREE 3. Funds are typically deposited into the merchant’s bank account three to five business days after the transaction is initiated. Deposit funds: The payment is automatically withdrawn from the customer’s bank account, the online software sends a payment receipt to the customer, and the payment itself is deposited into the business’ bank account.Finalize and submit: Once information is properly entered into the payment software, the business clicks “Save” or “Submit” to start the ACH transaction process.If it is a recurring payment, this information also includes the details of the recurring schedule. Payment set-up: After authorization, the business inputs the payment information into the online payment processing software.This can be done via an online payment form, signed order form, or recorded phone conversation. Request authorization: The business needs to gain authorization from the customer before making the transaction.There are a few steps involved to process an electronic check: Instead of a customer manually filling out a paper check and sending it to the business they need to pay, technology allows the process to happen electronically, saving both time as well as paper waste. How Do eChecks Work?Įlectronic check processing is similar to paper check processing, only faster. The payment must be authorized by the customer, either by signed contract, acceptance of a website’s “Terms and Conditions,” or a recorded voice conversation. With an ACH merchant account, a business can withdraw payments for goods or services directly from their customer’s bank account. These payments are facilitated by the “Automated Clearing House” (or ACH) network, an electronic network used by U.S. WIth an eCheck, money is electronically withdrawn from the payer’s checking account, transferred over the ACH network, and deposited into the payee’s checking account. What Is an eCheck?Īn eCheck, or electronic check, is a digital version of a traditional paper check. We’ve compiled a list of the most common eCheck (electronic check) questions with answers here, so you can learn everything you need to know about eCheck payment processing rates, times, and more. Has someone asked you to pay with eCheck? Are you looking to collect eCheck payments from your customers? Are you all around confused by eChecks? Don’t worry you’re not alone. ![]()
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