An e-check is the electronic version of the traditional offline payment solution of paper cheques. Individuals and companies are able to make and accept online payment transactions through e-checks as they use the internet as a platform to be completed.
The drawbacks of electronic checks
Companies across the globe choose to offer their customers the opportunity to pay by electronic checks. The global outreach of this payment solution is infinite as it utilizes the internet as a platform. However there are many drawbacks of employing this online payment solution to conduct payment transactions for goods and services.
Customers who opt to pay with e-checks are often at a disadvantage as the money is immediately debited from their account, in contrast to paper cheques that provide individuals with a “float” time during which they can debit sufficient funds into their bank account.
Due to the insufficient funds in many individual’s bank accounts, their e-checks are often “bounced” or returned. This not only causes delays in the payment transaction but its increases the amount of time involved in returning and refunding payment transactions. As a result, the company receiving the payment has delays in providing their goods and services.
Companies that offer e-checks as a payment solution to their customers are often subject to delays in payment transactions due to returned checks. The main reason behind returned checks is insufficient funds as well as fraud. Returned checks cost companies a lot of money in processing and checking for fraud.
Individuals and companies that wish to acquire e-checks as an online payment solution are advised to seek the assistance of a professional consultancy firm. Through the guidance of professional consultants, you can ensure that you receive and make payments in a professional manner.