Glossary

E-Check

An E-Check, or electronic check, is a digital version of a traditional paper check, leveraging electronic funds transfer to conduct payments directly from the payer's bank account to the payee's account. Utilizing the Automated Clearing House (ACH) network, E-Checks process transactions in a similar manner to paper checks but without the physical components.

To initiate a payment via E-Check, the payer must provide their bank account number and routing number. This authorization to transfer funds can be conducted through various channels, including online payment forms, telephone transactions, or through a signed order form.

The primary benefits of using E-Checks include reduced processing costs and faster transaction times compared to traditional checks, as there is no need for physical transportation of the check. Moreover, E-Checks offer environmental benefits by minimizing paper usage and enhance security by reducing the risks associated with physical check handling, such as loss or theft. This method of payment is particularly advantageous for handling larger payments that recur, such as utility bills, mortgage installments, and other substantial periodic payments. E-Checks provide a secure, efficient, and eco-friendly alternative to paper checks, simplifying large transactions and recurring payments for businesses and consumers alike.

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