What is an eCheck?

Posted by Checkbook on Jun 01, 2020

eChecks (aka. Electronic Checks) are a payment tool that are used to send funds electronically.

A picture of a check is sent via email to the recipient. Funds are then withdrawn from the Originator’s Checking Account. Those funds are transferred through the ACH Network, and deposited into the Recipient’s Account.

eChecks hasten the payment process in an environmentally friendly way. They allow the facility to email a picture of a check, rather than mailing an actual physical check. If Paper Checks represent the age of dinosaurs, then eChecks are the first ice age. The modern day world runs on Digital Checks due to a number of flaws of eChecks.

  1. eChecks don’t always update in real time and funds received through an eCheck take more than 3 business days to settle.
  2. eChecks can’t verify the amount of funds in a payor’s account, making the eCheck more likely to be bounced when an overdraft occurs.
  3. eChecks require senders to find their Routing and Account Numbers, which is inconvenient, and often impossible.
  4. eChecks put senders’ sensitive information at risk by exposing them to the payee.
  5. eChecks only convert the check information into ACH files, which slows down the process for all parties involved.
  6. eChecks make it impossible to instantly verify bank accounts and thereby prevent fraud.

Digital Checks are the payment method of now, and the future. Join Checkbook in revolutionizing the way we send funds, all for under a dollar.

About Author: The Checkbook Team

Related Posts

Some Digital Payment Innovators Still See Value In Checks

Kate Fitzgerald of PaymentsSource writes "Checkbook.io also leans heavily on paper check nomenclature and imagery, sending B2C payments via a text or email that opens to look like a check made out to the recipient."

Checkbook Partners with Ace+

Checkbook Partners with Ace+, a major mystery shopping company with over 300,000 professional evaluators throughout the United States and Canada

Meet Checkbook: A Digital Check Service That Aims to Put End to Paper Checks

Checkbook’s Digital Check solution gives Financial Institutions, control of their payment process. Checkbook’s benefits become increasingly goodbye in its ability to cost-effectively enable businesses to send and receive payments in bulk and track everything in real-time online.

Ready to get started?

Explore Checkbook, or create an account instantly and start sending payments. You can also contact us to design a custom package for your business.

icon
Always know what you pay

Integrated per-transaction pricing with no hidden fees.

icon
Start your integration

Get up and running with Checkbook in as little as 10 minutes.