What are electronic checks (eChecks)?

Electronic checks, also known as electronic checks, automatically debit payments from the buyer’s bank account and deposit the funds into the seller’s account. Electronic funds transfer with electronic checks is safe, reliable and efficient. A single account allows businesses to accept payments online, by phone, fax, or mail.

Electronic checks provide businesses with an alternate method of accepting payments from buyers. Electronic checks allow businesses to get more sales from shoppers who don’t have or prefer not to use cards to make purchases online. Electronic checks are now commonly offered as a payment option at checkout, and consumers expect to be able to pay with electronic checks.

Electronic checks: business case

Building a business case for adding electronic checks to your payment options is simple. Consider these statistics:

• In the US, 75% of all non-cash payments are paid by paper check or electronic check.
• More than 70 million American adults do not have a credit card. Offering electronic checks gives these shoppers a way to pay for their purchases.
• 23% of American households cannot qualify for a credit card. Electronic checks are a good payment alternative.
• More than 90% of American households have bank accounts and can make purchases with electronic checks.

Electronic Checks and Consumers

There is a high degree of consumer acceptance of electronic checks as a payment option. Americans are paying with electronic checks more than ever. Many consumers already pay their utility and household bills online or through direct debit. Consumers have grown accustomed to electronic checks as a payment option. Buyers now expect electronic checks to be offered as a payment option at checkout.

Another factor in the dizzying use of electronic checks is the tightening of credit markets due to the recent economic downturn. Consumers have less available credit and are also looking to cut back. Paying with eChecks eliminates risk to credit scores, avoids potential finance charges, and helps consumers maintain control over finances.

Advantages of electronic checks for merchants

• Expand sales channels. Accept eChecks online or take eChecks by phone, fax or mail.
• Save money on processing. Electronic check transaction fees are much lower than processing credit card payments.
• Increase sales. Capture sales from consumers who do not have or prefer not to use cards.
• Protect revenue from recurring billing. Provides merchants with easy-to-stabilize recurring billing cash flow.
• Reduce collection times. For receivables, reduce receivables payment times with no more “check is in the mail” excuses.