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The Role Of Electronic Check In Digital World
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Online check processing gained huge advantage in digital world giving exceptional benefits to merchants, businesses men, and individuals by transacting online payments securely and in easy cost effective way. Check processing solutions enabling merchants to accepts and process checks electronically in all ways.
Electronic Check processing solutions given a solutions to merchants who are accepting paper checks. E-checks are processed through ACH (Automated Clearing House) network to save time and money because electronic checks have more security features than a paper check. They give better shopping experience to customers and protect business. The reason behind the popularity of electronic check is fast, safe and efficient service. Electronic checks are also called E-checks.
How E-checks Works
Electronic check processing is easy and efficient process to manage transaction and settle payments. First, you run a customer’s paper check through an electronic scanner system supplied by your merchant service provider. This computer-generated system captures the customer's banking information and the payment amount. The information is then transferred electronically over the Federal Reserve Bank's ACH Network, which takes the funds from your customer's account and deposits them into yours.
After payment approval, the virtual terminal will print a receipt for the customer to sign and keep. Your employee should then void the paper check and return it to the customer. You’ll be able to view and report on your merchant transactions online, although features may vary depending on your merchant service provider or your payment processing solution provider.
The Connection of ACH Networks and E-checks
ACH Network is an electronic network for financial transaction in U.S that moves fund and information electronically from one entity to another. It’s a highly reliable and efficient nationwide electronic network governed by the rules of the National Automated Clearing House Association (NACHA) and the Federal Reserve (Fed). The funds move directly to and from bank account. Ach is fastest mode of making payment than traditional paper checks. Ach network also handle debit and credit card transactions direct deposits of payroll, Social Security, and other government benefits, direct debit payments and business-to-business payments.
Benefits of Processing Electronic Checks
processing e-checks can give you many benefits over the traditional paper checks. Electronic checks processing help to save time and money. You can easily process transactions and submit payments instead of making daily trips to banks.
1. Reduce additional cost to process paper checks and don’t come with any deposit or transaction fees. As a result, processing an check is generally much cheaper than processing a paper check or credit card transaction.
2. Businesses that accept electronic check gives fast payment services. Electronic check conversions have their funds deposited almost twice as fast as those using traditional check processing. Billing companies often receive payments within one day.
3. E-check can expands your customers and increase the sales in many ways. If you’re converting from paper checks to E-checks, you can start accepting international and out-of-state checks while using account validation and customer authentication processes to protect your business from fraud.
4. E-check are highly environment friendly e-Checks help reduce the more than 67.4 million gallons of fuel used and 3.6 million tons of greenhouse gas emissions created by transporting paper checks.
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