These days, lots of discussions are taking place about electronic checks and the check payment processing systems. These payment systems offer a lot of advantages over traditional payment methods. For example, customers can use their mobile devices and computers to make payments and purchase their desired products. And the great thing is that they can do so from the comfort of their homes. In this article, we are going to discuss the advantages of electronic checks.
eCheck Payment Processing
eCheque payment solutions feature a simple check cashing system. In other words, this system is low cost as far as getting paid is concerned. Plus, the system works quite quickly, which is why it has become an ideal choice for merchants. With these solutions, merchants can meet their payment processing needs with no trouble.
Electronic check processing starts the moment a customer writes a check. The check is run through an electronic device. This reader verifies the information, such as the routing number, account number, and the check number. Besides, the system also verifies other information.
The verification of the check is completed on the basis of the agreement the payment processor has with the merchant. Then the writer of the check leaves their signature on the receipt. Afterward, the check is voided and sent back. Finally, the transaction shows up on the bank statement of the customer under the debit column.
The captured data is sent to the payment provider for further processing. And the funds take around 1 to 2 business days to be deposited in the merchant account. Therefore, this process works quite fast.
The first advantage of electronic checks is that they come at a much lower cost than the traditional paper checks. As a matter of fact, the average cost is around $2. On the other hand, electronic cheques cost around 0.5 dollars. Therefore, it is possible to save half the amount against each transaction.
Time Saving and Convenience
Although this advantage is not related to cost, we know that time is money. You no longer have to depend on paper checks. Since you don’t have to sign this electronic checks, you can save a lot of time. Apart from this, you don’t have the problem of losing these eChecks.
Reliability and Security
Another great advantage of these units is that they have an automated system that depends on the ACH network. Unlike a paper check, electronic checks come with a higher level of security. In other words, the encryption system verifies the dollar amount, digital signature, and the account number against the account name.
Long story short, this was an insight into some of the major advantages of using electronic checks instead of the conventional alternatives to make or receive payments. If you have never used these systems, we suggest that you give them a go today. We bet you won’t regret your decision.