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If you’ve ever wondered what an eCheck is, how it differs from a traditional paper check or if it’s the same thing as ACH (spoiler alert: it’s not!), this guide can help you in navigating the secure and instant world of digital check payments.
From a consumer perspective, it can seem like paying by check is a thing of the past, but in the B2B landscape, this is far from true. In fact, according to a 2024 survey by AFP, 70 percent of respondents said their organization was still using checks to send and receive payments. In many instances, business owners prefer more traditional payment methods due to the remittance data included. But to keep up with the rapid evolution of the payment space, businesses deserve innovative solutions that match the fast pace of today’s digital business climate.
Enter: eChecks – a payment option that offers the best of both worlds. But what is an eCheck, exactly, and how does it all work?
What is an electronic check?
An electronic check, aka eCheck, is exactly what it sounds like – it’s a digital form of a traditional paper check. eChecks include all the same information as paper checks do, but they can be sent instantly and digitally. Plus, they can be sent with remittance information attached, just like a traditional business check. eChecks are created online or within common accounting software, then are delivered through a secure link in an email.
One of the greatest attributes to using eChecks is its flexibility. Since eChecks are delivered digitally, they are a quick and efficient payment option. You may choose to send an eCheck to pay for a service with a quicker turnaround than a traditional check. Or, if your payee is located out of state, you can save a trip to the post office by choosing this digital payment option.
How do eChecks differ from paper checks?
When comparing eChecks with traditional checks, the main difference lies in their physicality. Traditional checks are tangible; eChecks are digital. They both contain the same information, however eChecks carry the added convenience and speed that comes with other online payments. Payers can send electronic checks in seconds to anyone, from anywhere, at the speed of email.
Cost comparison of eChecks with other payment options
The price of eChecks depends on the issuer, but as this payment method is sent digitally, they are generally more affordable than traditional business checks. Plus, senders can save money by not having to purchase additional envelopes and postage.
There are no processing fees either – eChecks are a product, not a service, so you only need to purchase an amount that suits your needs.
What does an eCheck look like?
An eCheck looks very similar to a traditional paper check. Here is an example of what an eCheck looks like when printed out:
The eCheck portion includes all the necessary data that paper checks do, including sender information, check number, the date the check was issued, recipient name, payment amount, memo line, routing number, account number and signature endorsement.
In addition to the check itself, also included are instructions on how to use the eCheck once printed.
Are eChecks safe? Security features of eChecks
Thanks to its digital nature, eChecks don’t pass through human hands, reducing points of contact and thus, helping to reduce exposure to risk. Plus, there’s no issue with this payment getting lost in the mail.
For business customers using Deluxe Payment Exchange, eChecks come with rigorous security features, such as EZShield® Premium Check Fraud Protection and multi-level account verification.
eChecks vs. ACH – What’s the difference?
When comparing eChecks to ACH, think form versus function.
ACH, which stands for Automated Clearing House, is an electronic network used to process digital payments. ACH checks, a type of electronic funds transfer, are process through the ACH network. These payments include direct deposits and direct payments, such as peer-to-peer payments.
eChecks are also a type of electronic funds transfer, or EFT. eChecks, like ACH checks, are also processed through the ACH network.
How does an eCheck work?
eChecks work similarly to their paper counterparts. Rather than filling the check out by hand, information is inputted digitally, or pulled automatically from your accounting software. Next, the payment then sent to the receiver via a secure link. The recipient can then choose the method in which they’d like to receive their payment.
For Deluxe Payment Exchange customers, eChecks can be ordered online in batches, just like traditional checks are.
How do I deposit an eCheck?
If you’ve ever deposited a paper check, you’ve likely already used one of the options available to you when depositing an eCheck. After printing your eCheck, you can physically bring it to your bank or your bank’s ATM to deposit it. If available through your bank, you can also use their mobile banking app to capture the check remotely and deposit the funds that way.
When eChecks are sent through the Deluxe Payment Network, recipients can choose to print the check or use Deposit Services, which require a small convenience fee. This allows them to receive funds via direct deposit, or have funds deposited onto debit card or in their PayPal account.
How do I receive an eCheck?
Recipients don’t need any additional software or technology to receive an eCheck. Are you asking yourself, “What do I need for an eCheck?” It’s simple – the only requirement to getting paid via eCheck is having an email address.
How long does an eCheck take to clear?
The time it takes for an eCheck to clear can vary depending on bank processing schedules and a payer’s financial standing. Many transactions are funded within 30 minutes, but it may take up to 48 hours for an eCheck to clear.
Can an eCheck bounce?
Yes, eChecks can bounce. Just like paper checks, the funds to fulfill the digital payment aren’t instantly taken out of the payer’s bank account, so it can still bounce if there are insufficient funds in the payer’s account.
Send eCheck payments with Deluxe Payment Exchange
When you use eChecks from Deluxe Payment Exchange to handle your business payments, you’ll get all the benefits of traditional checks with the added convenience and speed of an online payment system. The Deluxe Payment Network:
- Requires only the sender to have an account
- Does not need the recipient’s banking information
- Sends full remittance data with each payment
- Has built-in separation of controls
- Has no additional processing times or rush fees
- Allows you – not the bank – to control when a payment is sent
- Provides delivery within minutes
eChecks are cost-effective, easy and secure – plus, they don’t require additional investment in a software or technology. Send checks in seconds to anyone from anywhere at the speed of email.
eCheck FAQs
Have more questions? Explore all the ways eChecks work with Deluxe Payment Exchange.
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