Are eChecks Secure?
Fraudulent paper check scams used to be rampant and still exist to some extent today. In 2017, one study found that 74% of participating organizations had experienced paper check fraud. Thankfully, there is a more secure option.
Digital checks, or eChecks, are the modern, secure alternative to traditional check payments. They offer all the convenience and benefits of a paper check without any of the risks. If you’re on the fence about using digital check payment processing for your business, rest assured that eCheck security offers your business protection from fraud. Read on to find out why eChecks are secure.
There are several advantages that explain why checks remain a popular payment option:
- They don’t have the fees that credit card processing does.
- Some landlords, businesses, or government agencies only accept check payments.
- They leave a secure paper trail through your bank.
Checks are here to stay, so we might as well bring them into the modern era.
Why Are eChecks Secure?
Digital check processing services like SeamlessChex pass all sensitive information through your banking institution. Because the user enters their information through their bank, there’s no chance of entering invalid information for the payer or the payee.
This electronic funds transfer (EFT) also passes customer information through financial institution-standard encryption. If you’re not familiar with encryption, essentially, it works by connecting two keys, one private and one public. Only the recipient with the correct key can decrypt your data to process it, so even if your information was intercepted, the hacker would have no way of unscrambling it. That means the likelihood of a hacker accessing your information is practically nonexistent, giving you peace of mind that your eChecks are secure.
Why eCheck Security Far Surpasses Paper Check Security
Obviously, paper checks display your information physically. If they get lost in the mail or misplaced, you could be at risk of a data breach. Also, since they take so long to process, you as a business owner risk the check bouncing from insufficient funds in the payer’s account.
Digital check verification involves EFT services with highly encrypted, 128-bit SSL communication channels. Encrypted information cannot be accessed by anyone other than the involved parties, unlike a paper check that can be intercepted by anyone.
Instant check verification adds a solid layer of eCheck security, eliminating the risk of bounced checks. If you have a physical business, you can even integrate digital check processing into your POS systems, giving your customers yet another payment option that could help make a sale.