Electronic checks can be processed like paper checks. It’s payment processing entails the use of electronic check books. By way of definition, an electronic checkbook can be regarded as a gadget in form of an electronic voucher. It has customized working tools, check processing software, private and public key pairs and unlocking utilities, including other functional features; and can also assist in saving transaction history. Any time an electronic check payment is to be carried out; a plain check usually shows up in the payer’s screen. A space in the check is being made available to supply information such as memo, date and the said amount. The signature can be attached on the electronic check by inserting the electronic checkbook into the reader device. Thereafter, the customer will be required insert his PIN in order to open his checkbook.
The whole information in the electronic check is interpreted by the reader device with the signature fixed. The transaction history from the checkbook is still preserved while the copy of the electronic check which has been signed can be carefully kept by the payer. It should however be noted that the signature which has been electronically attached can be authorized and confirmed from time to time in order to verify the owner. The role of the ACH payment processing platform here is to perform the clearing of the electronic payment between banks and other financial organizations that are involved in the transaction. Furthermore, the ACH merchant arranges the payment processing files that were received from participating banks according to the paying and the receiving banks respectively. Then, accounts in these files are being calculated and thereafter, monies are being credited and debited to deserving banks for that reason.
It will be fair to state that ACH processing is being performed in sets. This is so because a single financial transaction can be concluded in seventy two hours; and as such, one needs to be careful. In a situation where money is not enough in the system to execute the transaction, the location of that bank will be notified immediately. Again, National Automated Clearing House Association (NACHA) has a stated law on the operation of electronic processing especially ACH check processing placed the duty on their clients’ identification and authentication. They added other duties that have to do with making their software available for proof and confirmation, their security status and their security review.
Electronic check processing payments that are controlled by the ACH platform have developed in recent times. This is why we always emphasize that electronic check payment processing is more affordable and has a quicker processing than that of paper. To reiterate again, I would say that electronic check payment processing uses an electronically signed signature to recognize the account owner. The other feature which is the public and private keys also enables the system to recognize the personality of the account owner. To conclude however, the number of benefits attached to this electronic check payment processing can assist banks in increasing their profit on every transaction.