In a world of technological advancement, it’s beneficial having many payment options for your customers. However, navigating through these innovations can be tricky for those who lack the experience or knowledge of using all their features properly. Electronic checks are no exception. Paperless checks improve the security, speed, and efficiency of processing traditional paper checks. This blog will break down the ins and outs of electronic check processing, simplifying this necessary tool for your business’s long-term success.
What are Electronic Checks?
Electronic checks, or eChecks, are paperless checks. eChecks give your customers the look and feel of sending a paper check, without them having to write or mail a paper check. . Rather than going to the bank to order a checkbook, handwriting payment details, and then hoping that the mailman doesn’t misplace your money, you can simply open a computer. All you need is a device with internet access, and then all those payments can be sent directly without ever leaving home. Transactions occur directly from bank to bank.. When you send an eCheck, the funds are typically available the next day.
How Does Electronic Check Processing Work?
Processing electronic checks can be easy if you have the right players navigating your transactions. 4 simple steps that go into electronic check processing:
To make the transaction via electronic checks, the business needs to request authorization from you. This can be done through an online payment form or signed order document. Payments can also involve a phone conversation where they’ll ask if it’s okay for them to record your voice before putting together something in writing with other details about what is being purchased (like quantities).
The business then captures the payment information either over the phone, online, or in person.
Funds are transferred from the customer’s account and deposited into the merchant’s bank account. Merchants are typically funded the next day but final settlement occurs in 72-96 hours.
Why Use eChecks?
eChecks provide an easy way for businesses to make sure their customers are paying on time, as eChecks make it easy to send and receive payments on a recurringbasis. Electronic checks allow recurring payments, autopay, and auto-renewals. Regular payments can be beneficial in the long run because they ensure client retention and are more straightforward than writing out individual ones every month.
Avoiding Interchange Fees
By removing bank-to-bank communications associated with credit card processing, electronic checks can save businesses money by avoiding interchange fees. This amount of savings can be significant with more prominent tickets and volumes.
Security is innate in electronic check processing. The process of authenticating and encrypting transactions enables your financial information to remain safe. Digital signatures are used to ensure that eCheck transactions cannot be fraudulently duplicated. This detection strategy monitors for malignant activity and duplicate transactions.
Sign Up for SeamlessChex Electronic Check Processing
If you want to stay ahead in this fast-paced, digital era, then your business must incorporate electronic checks. Online payment services like eChecks can help save and make more money for businesses like yours by automating how customers pay their bills or order products! SeamlessChex offers unique features such as low processing fees, multiple online payment options, ACH payments, and top-notch transaction security. Don’t hesitate to contact a SeamlessChex representative today to see how electronic check processing can be integrated into your business.