If you don’t know about eChecks, it’s high time you learned. That’s particularly true if you have an online business. You might encounter eChecks, and you need to understand how they work.
Your company might set up an eCheck merchant account, or you may receive payments from one. Let’s look at popular questions having to do with this payment method.
What is an eCheck?
An eCheck is shorthand for an electronic check. It’s a check that doesn’t exist in the physical world. Instead, it’s a digital one that you send to someone to pay for an online service.
When Should You Use an eCheck
Most people use eChecks if they want to pay for a recurring online service. With one, you can transfer money seamlessly from one bank account to another.
Does It Cost Anything to Use eChecks?
Yes, it usually costs something to utilize eChecks. If you decide to use them in business, whether you’re sending or receiving one, expect to have to pay a nominal fee to the check’s supplier and processor.
Are There Any Companies That Won’t Take eChecks?
There are definitely some companies that won’t take eChecks. In order to figure out whether an online entity will take one or not, make sure to look at the different payment methods on that company’s website. There, it should tell you specifically whether that is an accepted option.
Why Are eChecks Better for High-Cost Items?
As you learn more about eChecks, you may notice that the individuals or entities that like to use them often do so when paying for big-ticket items. This is because eChecks generally have lower fees associated with them than credit cards.
Can You Use an eCheck for Paying Your Employees?
Yes, it is often to your benefit to pay your employees using eChecks. This simplifies the payroll process, especially if you are running a larger company. A worker who sets up direct deposit will then not have to deal with a physical check that they could easily lose.
What is Required to Set Up eCheck Deposit for Workers?
If you’re running a company and want to set up eChecks for your workers, you will need each employee to provide their bank account number and routing number. The payment then goes through an ACH network. The payee’s bank will get the funds, which appear in that individual’s account.
How Long Does a Transfer of Funds Usually Take When Using an eCheck Deposit?
The time it takes to send and receive an eCheck varies. Usually, the money will appear in the payee’s account within 3-5 business days. Some services will deposit the money faster for a slightly higher fee.
What Security Measures Are Typically Used with eChecks?
When eChecks are sent, encryption usually occurs. Verification measures must also take place. This typically involves electronic signatures and multi-factor authentication. Most eCheck providers also have elaborate fraud detection systems in place that look for suspicious patterns.
Now, you know some eCheck basics that should serve you well.
(DISCLAIMER: The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.)
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