An eCheck payment works like a paper check, except you don’t have to write a paper check and mail it or deliver it physically to the recipient.
When you send or receive payments through the Check21 payment rails, you’ll notice that the payment status remains as 'e-check payment in progress' for a few days until the money is successfully deposited into the recipient’s account. In some instances, the status of the e-check payments will show 'pending,’ which is the same thing as 'payment in progress.'
This payment status means that the payer is using the e-check payment process, which might take several days before the funds are deposited into the recipient's account.
In most cases, e-check payments take between three to eight days to fully settle, depending on the type of transaction. High-risk transactions take longer because the involved banks must do the due diligence to ensure the payments go through successfully. So, if you accept e-checks, you need to know what each e-check payment alert means.
Importance of Monitoring E-Check Processing Status
You also need to learn how to conduct an e-check payment status check to know if your payment was successful. For instance, if your e-check bounces, you’ll receive a message from the bank or payment processor informing you about the failed payment.
Additionally, you also need to know what happens if an e-check bounces. You shouldn’t send an e-check if you’re unsure if your bank account has sufficient funds to process it because a bounced e-check can lead to the closure of your bank account and a low credit score.
Why Does Your E-Check Read Payment in Progress?
In most cases, an e-check takes about three business days to settle. So, the e-check payment in progress status shows that the payment has already been initiated and the bank is processing it.
The payment processing company you choose for your e-checks will determine how long they take to go through. If the payment processor doesn’t have the right payment processing solutions, your e-check payments could take up to eight days to settle, which will delay your business transactions.
Other Reasons for Delayed Payment Processing
There are multiple other reasons why your e-check payment is still listed as 'in progress.'
Payment During Irregular Hours
If you’re accepting e-check payments on holidays or weekends, they may take longer than expected to settle because these aren’t banking business days. When your customer’s e-check payments are in progress, refrain from shipping any goods or offering any services because the e-checks may fail to clear.
You should wait until the checks clear to ship the items or deliver the services paid for. If you deliver the items and the e-check bounces, you risk losing your funds, especially if the client made a fraudulent purchase.
Verifying Payment Is Legitimate
The 'payment in progress' status helps you to monitor your payments to avoid losing money to online scams. This is because your e-check processor is verifying with all banks involved that there is money in the outgoing account. Otherwise, you may deliver goods and services without ever receiving payment.
How to Monitor E-Check Processing Status
You can find the status of your e-check payment by looking into the transaction details. The payment status also includes essential information about the payment, like the expected clearing date.
To check the clearing date of your e-checks, go to your processor's dashboard or bank account’s online portal and click on the 'Activity' button. Then, open the e-check payment for the transaction details. If you’re using your bank’s app, go to your e-wallet and click on the 'Activity' button. Next, click on the 'e-check Payment' button to see the expected clearing date.
In Summary
eCheck payments operate similarly to traditional paper checks but without the need for physical delivery. When using e-checks, you'll often see the status 'e-check payment in progress,' which indicates that the payment is being processed and may take a few days to deposit into the recipient's account. Occasionally, it may display as 'pending,' which means the same thing.
The 'payment in progress' status also safeguards against online scams, as the e-check processor verifies the funds' availability before you provide goods or services.
To monitor your e-check processing status, access transaction details, and check the expected clearing date through your processor's dashboard, bank's online portal, or e-wallet app.
Understanding e-check payment statuses is essential for efficient financial management and safeguarding against issues like bounced checks and delays.