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.
- Authorize It
- Enter Transaction Info
- Processing
- Confirmation
For a more detailed breakdown of 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
- Payoneer
- PaySimple.com
- Xoom.com
- Skrill.com
- Major Banks
More Information About Echecks
How eChecks Work
What Are Echecks
Overview of eCheck TechnologyeCheck vs Paper Checks
eCheck vs ACHeCheck vs SET
eCheck vs Home Banking Bill PayingEcheck Specs & Reference Documents
Financial Markup Language
FSML 2.0
Echeck Overview Presentation
Architectural overview of the FSTC eCheck system
Early History of eCheck
Early eCheck Architecture
Echeck Library
Photos of Historical Moments in Echeck History