What You Need to Know About eCheck Processing Time
Before COVID-19, electronic payments were getting popular. Now, almost everyone in the US prefers digital payments over cash or checks. In 2021, around 82% of Americans used digital payments. For businesses, taking electronic payments isn’t just good—it’s necessary to survive. That’s why over 93% of businesses take credit cards. But processing fees for cards can eat into profits. To save money, lots of businesses are checking out eChecks. In this article, we’ll explain what eCheck processing is, talk about how long it takes to process, and answer: Are eChecks safe? Let’s get started!
What is an eCheck?
Handling paper checks can be a real headache. Think about it—writing them out, mailing them, and then waiting for what feels like forever for them to arrive. It’s not just time-consuming for the sender; it’s also a waiting game for the person receiving it. But now, thanks to eChecks, the whole process has gone digital, and it’s a game-changer.
Electronic checks, or eChecks, are basically the upgraded, tech-savvy version of those old-school paper checks. Instead of going to your bank for a checkbook, you sign up online with a special service that handles eChecks.
Here’s the cool part: eChecks Zoom through secure online payment networks. That means they’re not just faster, but they’re also way safer than paper checks. And the best part? They’re a breeze to use—much more convenient than dealing with those physical checks.
Are eChecks Safe?
Considering the safety of processing digital checks is crucial, especially when comparing them to the prevalent paper check fraud. It’s reasonable to question whether eChecks provides a secure payment method for your business. Generally, eChecks offer a higher level of safety compared to traditional paper checks. However, the security of eCheck payments greatly relies on the cybersecurity measures implemented by your chosen processor.
At eCheckplan, we prioritize security by employing a multi-layered approach. We implement various strategies such as account ownership authentication, balance verification, and the utilization of signature capture technology to minimize the risks associated with check fraud.
Furthermore, our payment gateway plays a pivotal role by encrypting eCheck data before transmission. This crucial step ensures that sensitive information remains safeguarded, significantly reducing the likelihood of it falling into the wrong hands.
In summary, when partnering with us, the safety of eChecks is paramount. We’ve taken substantial measures to fortify the security of eCheck processing, making them a reliable and secure payment solution for your business.
How Does eCheck Processing Work?
Understanding eCheck processing times involves grasping how they’re handled. Unlike paper checks sent through mail and deposited remotely, eChecks go through the Automated Clearing House (ACH) network. This system handles electronic fund transfers in the US.
Generally, eCheck processing involves four stages. Here’s what occurs when you send an eCheck payment:
1. Authorization: Before an eCheck payment goes through, the payer needs to give the green light. They input their checking account and bank routing numbers, then can OK the eCheck in different ways: a digital signature, saying yes over the phone, or clicking the submit button.
2. Processing: Once the eCheck gets the thumbs-up, the payee sends the request to their payment processor. The processor takes the money from the customer’s account and sends the payment file to the ACH network to reach the right folks in the transaction.
3. Verification: This step impacts how long it takes for an eCheck to process. As the payment file enters the ACH network, the processor verify check with the banks involved to confirm details. They make sure the accounts are real and there’s enough money before moving the cash to the payee’s account.
4. Settlement: If all’s well during the checking phase, the transaction goes through. Money moves from the payer’s account to the payee’s account. Both sides get a confirmation, either through email or a digital receipt. That’s it – the eCheck journey ends here!
How Long Does eCheck Processing Take?
Have you ever wondered about the time it takes for eChecks to process? While wire transfers happen instantly, eChecks work in batches, making their processing slower. Typically, it takes anywhere from one to five business days for an eCheck to go through. But, there’s a way to speed things up! Certain processors can verify payment details right away, reducing the time to just a single business day. Take eCheckplan, for instance. They verify account ownership and bank balances instantly, making the entire process much quicker and more efficient.
Sign Up for Fast and Safe eCheck Processing
Processing credit cards provides customers with convenience, but it can strain your finances. Starting at just 1%, transaction fees can add up. Enter eChecks: they offer the same ease as credit cards while boosting your profit margins. Not only are eChecks more cost-effective, but they often provide better security measures than credit cards.
For secure eChecks with swift processing times, eCheckplan is your solution.
Our state-of-the-art verification and payment security technologies ensure the fastest and safest eChecks available.