eCheck Processing Helps Businesses Save Time and Money

Purchases are more and more often made online, According to BI Intelligence research, online consumer spending in the US will reach $632 billion in 2020, nearly doubling the amount spent in 2016.

 

Thanks to modern advances in technology, paper checks are now turned into electronic transfers (debit), also known as an electronic check or eCheck. For merchants or service providers, this means funds are electronically transferred from a customer or client’s bank account directly into their bank account through the Federal Reserve Bank’s Automated Clearing House (ACH) system.

 

Processing Electronic Checks

To easily process checks electronically, you can use a software program or a web-based payment processing service. With a web-based system or ASP (application service provider), you won’t have to install any software or purchase any hardware. You just need to key in check information and submit the transaction.

 

To process eChecks, you should:

 

  • Notify your customers that their paper checks will be processed electronically
  • Collect and convert, meaning when a paper check is presented as payment, it’s converted to a one-time ACH-based electronic payment
  • Process, meaning an ACH file is created and presented to your financial institution; the payments are processed through the ACH network, the customer’s account is debited, and your account is credited
  • Confirm, meaning when your customer’s account is electronically debited, the payment is listed on his/her bank account statement under, e.g., “other electronic payments”

 

Electronic Check Processing Benefits for Your Business

Electronic checks occur digitally, which accelerates the process.Unlike eChecks, paper checks require longer processing and hold times, and you can’t get paid faster. eCheck processing offers a number of benefits that you can use to your advantage:

 

  • Improve cash flow by accessing your money more quickly
  • Save your customers time and money
  • Are more cost effective
  • Are far more secure than paper checks, thanks to an encryption feature
  • Increase on-time collections
  • Receive 24-hour notification of NSF(non-sufficient funds)
  • Eliminate manual reconciliation of insufficient funds
  • Eliminate time-wasting trips to the bank
  • There are no deposit slips to complete
  • Fewer lost/stolen checks

 

When selecting an eCheck processing system, focus on:

 

  • A system that doesn’t require you to buy expensive hardware/software upfront
  • A flat rate on electronic check transactions (you shouldn’t pay a percentage of the transaction to the processor)
  • Monthly fees, transaction fees, and monthly minimums
  • A system that securely stores customer information
  • A system that can easily export customer data, enabling you to automate your entire AR system
  • A system that allows you to both process eChecks and do direct-debit transactions
  • Security

 

With reputable check processing companies, you can get exceptional check processing solutions to meet your business needs. Apply to a reliable and experienced check processing company so to enjoy only the best payment processing services available these days.

 

 

Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best check processing company, serving both traditional and high-risk Businesses.