An electronic check, often referred to as an e-check, is an electronic version of the traditional paper cheques. E-checks enable payment transactions to be conducted through an online medium, transacting money directly from the payee’s bank account.
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Applying e-checks as an online payment solution
Since the gradual decline of the paper cheques, electronic checks have grown in usage for electronic transmission to the paying bank or clearing house. E-checks offer an alternative way to pay for goods or services that does not require the use of a credit card. Instead, the money is withdrawn straight from your account, through the check processing authority and into the selected account.
There are numerous benefits of e-checks and they have proven to be a popular choice of payment solution by many companies and individuals. They provide greater peace of mind for those who do not wish to input their personal or financial details into the internet. E-checks also prevent merchants from seeing any of this information, thus emphasizing confidentiality and privacy throughout the transaction. The information required when making a payment with an e-check is simply the name on your bank account, your bank account number and your bank routing number.
The primary downside of payment transactions conducted via e-checks is the duration that it takes to clear the transaction. Just like a paper check, an e-check usually takes between two and five working days to clear, however it can take longer than this depending on which jurisdiction the check is sent to for processing.