Echecks work the same as the standard paper checks, but they are sent and received electronically. Customers can pay for products or services online using eChecks, and merchants can receive money in their accounts instantly. You have to create an eCheck account with an eCheck processing company.
Using eChecks for your business is beneficial because it provides cash flow. After all, eChecks are processed instantly. They are safe and secure, and processing fees for eChecks are cheaper than credit cards or regular paper checks, especially when you are receiving recurring payments. So let us look at the best way to send and accept eChecks for business transactions.
Get customer authorization
The first step to process an eCheck to receive payment for your business is to get authorization from the customer to charge them using an eCheck. If you already have an eCheck processing account with a trusted service provider, it will take you a few minutes.
Send your customer a secure link asking them to fill out an online payment form with their bank details and the amount they need to pay for the product or service. Once the customer gives authorization, you move to the next step.
Fill in the transaction details.
Once the customer gives the go-ahead and you are ready to accept payments, pull up the interface and complete the details provided by the customer. The best thing about an eCheck account once the customer gives authorization and fills up the form you sent, it’s automatically completed—all you need to do is select the specific customer you need to ask for payment.
If you have already set up a recurring payment system for a particular customer, you can always skip this step and authorize the go-ahead to charge the customer.
Account verification
Once you have started the transaction, the system has to verify the customer’s account details and routing number specified by the customers match the ones the customer has authorized. The system also has to determine if the account is open and active.
The system has to verify if there is money in the account.
After the system checks, if the customer’s account is open and active, the next step is to confirm if the account has enough money to pay for the transaction.
The same way a paper check would bounce when there are insufficient funds in the customer’s checking account is the same way your eCheck would. With paper checks, verification would take two to three business days, but when using an eCheck, it is done instantly, and you can confirm if the customer can pay for the product or service.
Money transfer
Next is the money transfer from your customer’s account to your account. The number of days depends on the payment processor you are using. It can take one to three days.
Confirmation
Once the money is withdrawn from the customer’s checking account and deposited into your account, you will both receive notifications through email or text.
There you have it. That’s the simple process of seamlessly asking for payment using an eCheck. Echecks are secure and easy to use, and you can ask for prices from anywhere and anytime.
