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The eCheck Defined

What are eChecks?

An e-Check is the electronic version of the standard paper check. These are sometimes called electronic checks, direct debit, or ACH transfer. E-checks are used to make payments online using only the info that would be contained on a “paper” check. Go HERE for a deeper explanation about what Echecks are.

To pay via E-Checks or to collect money from E-Checks, an online payment processor must be used. There are different payment processors online that will accept E-check payments and they all work the same way.

As of 2015, Echecks are now a standard way to make payments online, along with Credit Cards and 3rd Party Payment Processing Companies like PayPal, Skrill, and many more.

The Benefits of eCheck

  • Lower Fees (lower fees than credit card or paypal payments)
  • Cost Efficient (no need to ‘buy’ a checkbook)
  • Received Bounced Check Notification within 48 hours
  • Can Store account information for repeat purchases
  • Flat fees cheap (around .50 cents US, depending on company)
  • Leaves a Digital Trace
  • No need to deal with the hassle of paper checks
  • eChecks can be used for recurring billing services
  • Pay multiple people at once (if payment gateway supports this)

How eChecks Work?

It’s a pretty simple process, despite all the fancy “digital”  stuff going on behind the scenes. These 4 steps are often handled by the payment processor gateway you are using to process the eCheck.

  1. Authorize It
  2. Enter Transaction Info
  3. Processing
  4. Confirmation

For a more detailed breakdown on the process, read our How eChecks Work article

How to Send an eCheck Payment

You must use an online payment gateway (such as PayPal) to initiate an eCheck payment an online banking with a bank that supports eCheck payments.

Some Online Payment Processors that support eCheck:

  • Authorize.Net
  • Paypal.com
  • PaySimple.com
  • Xoom.com
  • Skrill.com
  • Major Banks
  • more

More Information…

General eCheck Articles

Comparing eCheck

Technical Documents

ECheck History