Electronic Check Payment Processing


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.

ACH Payment Processing and it's Benefits


Before we look into this topic of discussion, we shall look it’s proper definition. ACH can be defined as an Automated Clearing House that is currently located in America. It’s duty is to carry out electronic financial transactions. ACH has the technological capacity to carryout voluminous transactions for large financial organizations and it does so it phases. It is however very important to note that ACH payment processing platform can also be used for solution on ecommerce payment processing by electronic holders account. In addition it can serve individuals who don’t use credit and debit cards for transaction.

The difference between ACH payment processing system and credit and debit card is that it doesn’t have the enabling power to quickly approve each transaction which is being carried out at the same time. The payment only takes some days to go through electronic process and thereafter, the account of the receiver will be credited while that of the payer will be debited. With this payment plan, you have the choice to either online or over the phone and it enables you change paper checks to electronic checks. Electronic check is better described as an electronic format of a paper check which can also be used to run online transactions.

This electronic payment processor have a bank account number and other details in which you can use to send money to the account of a merchant. Before receiving the money, a merchant can process the electronic check by scanning the physical printed copy and then change it to an electronic check before sending it electronically, for payment to be made.

The other way he can do this is to make use of a technically secured website that can enable him insert his personal details like his account name and number in order to easily process the electronic check.

The two payment processing methods can take about two days to conclude. I will like to mention some of the advantages of the ACH payment processing for a better understanding. First is that, due consideration is given to electronic checks than the paper type because you can easily determine the amount even when the money is little. Secondly, the entire process has speed and has the possibility of increasing sales. Also, the charges for using ACH payment platform is very little compared to when making use of the credit card.