eCheck Verification: What Is It and Why Is It Important?
The eCheck verification process is a necessary step in eCommerce when customers and businesses want to pay with eChecks. It can be confusing for some merchants but it’s an essential part of the eCheck payment process that you need to understand.
This post will help break down what eChecks are and why they exist, detailing how eCheck verification works and what steps your business needs to take to utilize this value-adding feature.
What is an eCheck?
eChecks, short for ‘electronic checks’, are an innovative way to make payments more efficient. Instead of having paper money floating around, you can simply login to your account and instantly transfer funds electronically. The digital check is sent through the Automated Clearing House (ACH) network and delivered directly into the receiver’s checking account. If you have an ACH merchant account, this process becomes even more seamless as the appropriate funds will be withdrawn from the customer’s bank account automatically upon purchase.
How do they work?
An eCheck payment can be processed once a customer enters their checking account information into the appropriate fields on a website and submits it. The customer must be completely aware of their transaction prior to its completion. This means that they will have to give consent online, over the phone, or through an order form with signature requirements.
Once consent is established, the business funnels the payment information through an online payment processing system to begin finalization. To protect the business from fraud, some payment processors implement software that provides instant bank account verification – that is, the processor is able to rapidly check that the customer’s bank account has sufficient funds to pay for the goods or services they are purchasing.
The eCommerce business will receive confirmation that the transaction has been completed successfully within a 24-hour timeframe. As soon as the customer finishes their purchase, an email is sent to them with a receipt for payment verification. The money will be withdrawn from their bank account and put into ours within three days. This process is both faster and safer than paper check processing.
Why do I need to run eCheck verifications?
eCommerce businesses should always run eCheck verifications before accepting payments from new customers for eChecks; those who do not will lose business fast→ here’s why:
The eCheck verification process ensures that transactions are legitimate and safe for both parties involved in the payment exchange. It allows you to know exactly where your money is going and when it’ll be there so you can offer better service, faster, more accurate budgets, and decreased risk.
eChecks are becoming more popular as the number of merchants that see the value of eCheck verification grows.
How do I get eChecks for my business?
The process of getting an eCheck merchant account is similar to that of establishing credit card processing. You’ll need business experience, a Federal Tax Identification Number, estimated volume amount, and a few other details to prove your company’s standing before applying with any provider- make sure you do your research!
eChecks are popular because they’re safe, easy to use, and fast. All you need is a name, address, and bank routing number (which can be found on the bottom of a check). eChecks also don’t require customers to re-enter their bank account information every time they want to make an order because each transaction is associated with that customer’s unique eCheck number and routing information.
Visit SeamlessChex today to get all-in-one solutions for your business! With features like instant bank account verification, fast next-day deposits, and world-class customer service, we can help make your transactions seamless!