What Are Echecks?

Learn about eCheck; what it is, how it works, the basics of the technology, eCheck security, and other important features.

eCheck vs Other

Wonder how eCheck compares to paper checks, debit cards, Automated Clearing House, (ACH) Secure Electronic Transaction (SET), and home banking? Click here.

eCheck Articles

Our comprehensive literature about the eCheck payment system

eCheck Specifications

Find out how Financial Service Markup Language (FSML) and digital signatures work together in eChecks.

History of eCheck

Articles documenting the history and rise of eCheck during the 90’s

The eCheck Defined

Wonder how eCheck compares to paper checks, debit cards, Automated Clearing House, (ACH) Secure Electronic Transaction (SET), and home banking? Click here.

Find out how Financial Service Markup Language (FSML) and digital signatures work together in eChecks.

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 2020, 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.