what is an electronic check

An electronic check, or eCheck, is a digital version of a traditional paper check. It contains the same information as a paper check, such as the checking account number, bank routing number, and payment amount. However, instead of being physically written and mailed, eChecks are transmitted electronically using the Automated Clearing House (ACH) network. This makes transactions quicker, safer, and easier. Electronic checks are part of the larger electronic banking field and are a subset of transactions referred to as electronic fund transfers (EFTs). They are considered the digital version of traditional paper checks and are facilitated by the ACH network. E-checks are inherently more secure than paper checks and have more security features, including authentication, public key cryptography, digital signatures, and encryption. Electronic check processing is similar to paper check processing, only faster. To send an eCheck, the payer enters the recipients name, email, payment amount, and a description. Businesses can benefit from accepting eChecks because they offer cost savings compared to paper check and credit card processing, faster processing times, more opportunities for back-office automation, and a more convenient payment experience for customers.