Electronic check processing is similar to other forms of alternative payment methods that utilize the money sender's bank account information. Instead of employing paper checks for business to business transactions, online payments or other funds transfers, consider using electronic check processing to pay for virtually anything. This payment type is extremely easy to use, secure and faster than using paper checks or credit and debit cards. The process is proven, and it is especially useful if you need to make several payments at once. 

The advantages of electronic check processing
According to echeck.org, electronic check processing combines all of the advantages of electronic payments with the secure, well-developed methods for processing paper checks. Electronic checks can reduce the speed of handling, transportation costs and security. In addition to these positive features, an electronic check is processed faster than a paper check, meaning there is very little to no messy paperwork and accuracy is ensured.

Whereas a paper check sent around the world can be compromised along the way, electronic checks go straight to the recipient quickly via a secure Internet connection. Fees for processing electronic checks are also generally much cheaper. According to echeck.org, the fees range from $.25 to $1.50, and payment with the technology can be initiated through a number of different platforms or software systems.  

The steps for electronic check processing
According to echeck.org, the steps to processing an electronic check are similar to paper checks. First, the payee authorizes the merchant to remove a certain amount of money from their account, which is basically like writing a paper check. This can be done online, over the phone or through a signed order form. Second, the payment info is submitted to the processing service, which is then handled by the processing company. Third, the payment information gets submitted to an automatic clearing house network. Finally, the amount authorized by the payee is removed from their account and then deposited into the recipient's account. 

According to the Houston Chronicle, if an electronic check is processed and fails to clear, it will bounce exactly like a paper check. Therefore, when accepting an electronic check, a recipient must wait a sufficient time for it to clear before having access to the money provided by the check. Typically this is around four days. For this reason, some business prefer other electronic payments methods. 

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