We don’t need to tell you how drastically technology is changing the world for merchants. Many new changes and developments have made tasks that used to be time consuming much simpler; one of the best examples of these technologies is electronic check processing (eChecks). While merchants like you were once forced to manually deposit checks to their bank account and wait for the funds to clear (a process that could take 3-4 days or more), now eChecks have made the process much more efficient for business owners.
What is Electronic Check Processing (eChecks)?
Quite simply, eChecks are a method of online payment where money is withdrawn electronically from your customer’s checking account and is then transferred to your bank account through a network known as an automatic clearing house (ACH).
Instead of slowing down the process by forcing banks to exchange paper checks with one another, electronic check processing now allows banks to take pictures of the fronts and backs of checks, and send this information electronically.
What about Authorization?
Your customers must authorize their payments. This can be done in a few ways: they may sign a contract, or accept a set of Terms and Conditions that you set up on your website, another option is to accept a voice recording from your customer.
What is the Process Like?
You upload the check information (the routing and account numbers) to the client’s payment provider so they may process it. The proceeds are then deposited into your account.
What Benefits Does eChecking Give You as a Merchant?
- Setting up an account with Painless will save you a huge amount of time. No more lengthy trips to the bank; you will be able to spend more time on what really matters– focusing on your business!
- Electronic check processing will also allow you to store information which will allow your customers to make simple, repeat purchases.
- Electronic check processing also allows checks to clear much faster–usually within 1-2 days.
- For merchants operating out of more than one location, checks can easily be placed into one account. Painless Processing makes it easy!
How Do Your Customers Send You an E-Payment?
You, the payee will send the customer a payment form online. Your customer will fill in the payment amount as well as the appropriate checking account and routing numbers. Once they have submitted the information, you have authorized the payee to withdraw the payment from your checking account.
What Types Of Payment Can You Make With eChecks?
As a merchant, you will pay a much smaller fee for eCheck payments than credit card payments. Because of this lower rate, it has now become common to use eCheck payments for higher-priced fees like mortgage, rent, and car payments. Electronic check processing is also popular for gym memberships and other services.
How Can You Get an eCheck Merchant Account?
Painless Processing can help you set up a merchant account so you too can take advantage of the ease and convenience of electronic check processing. Send us a payment to see how much you could be saving with Painless!