Online shopping has taken over the world, so it was only logical for online payment methods to do the same. Online payments have become an easy process, as we have PayPal, Skrill, and eChecks widely available. eChecks, in particular, have stood out as one of the most convenient ways to pay for goods, services, or entertainment. They are quick, easy, and don’t require you to spend much time on your Android phone. Here’s what they are and how you can use them the next time you are paying online.

What are eChecks?

Also known as an electronic check, online check, internet check, and direct debit, eChecks are precisely what they sound like. They are a digital version of a paper check that you can use to pay for different online goods and services. With it, the direct debit hits a merchant’s business bank account after being transferred and processed from the customer’s checking account. And if you are a fan of paper checks, then you might soon realize why eChecks are a way of the future.

For starters, they are processed much more quickly and easily, meaning you won’t have to play the waiting game. Just think about all that time you will be able to save by not having to go to the bank to deposit a check. Online payments take a lot of the hassle out of the equation, which is why they are gaining popularity as we speak.

How do they work?

The process for electronic payments by using eChecks is a rather simple one, and it consists of four simple and straightforward steps:

• Request authorization. Nobody can take your money before you give them the authorization to do so. The business will first have to check in with you to determine whether they can make the transaction, which they can do through an online payment form, over a recorded phone conversation, or through a signed order form.
• Payment set-up. Once you authorize a business to go ahead with the payment, they will input the payment information into the online payment processing software.
• Finalize and submit. This part is a pretty self-explanatory one – the business will now submit the form and start the transaction process.
• Deposit funds. After the process is started, the funds will be deposited into the business’ bank account. There’s no saying how much it will take for the funds to arrive to your bank account, but it usually takes somewhere between three and five business days.

When and where can you use eChecks?

One of the main things you should know about these checks is that they come with smaller processing fees. That’s why it’s very common to see eChecks being accepted for payments with a hefty price tag, such as mortgage, rent, and car payments. Of course, you can also use them for smaller yet recurring costs, such as a gym membership or gambling. Yes, you heard that correctly – there are many eCheck casinos in Canada where you can play without a worry in your mind. But before you take any action, we suggest you first inquire whether this form of payment is accepted before making a purchase.

Is it possible for an eCheck to bounce?

As we’ve already mentioned, these checks work just like the regular ones. This means that they, too, can bounce if you don’t have sufficient funds in your bank account. However, because everything is done online, you know when the funds are expected to leave your bank account – in three to five business days. Likewise, you should know how much money you have on your account, as your phone, coupled with constant Internet access, serves for more than just scrolling, purchasing and canceling your streaming service accounts – it also lets you check your balance at any moment.

If you are ever in a situation where your eCheck bounces, you should set up an alternative payment method right away. Likewise, you should contact the business or the service provider to see whether there are any incurred fees for your bounced check, as it would be best if you could avoid late payment penalties.

The cost behind processing eChecks

There’s no doubt that one of the main advantages of this form of payment is the low fee it comes with. There are many different processing rates, so it’s going to be impossible to give you an exact price estimate. But what we can give you are the average fees, which range from $0.30 and $1.50 per payment. Didn’t we already tell you that eChecks pay off big time?

A secure method for receiving online payments

Many times, people will be skeptical toward any action where they don’t actually have hands-on control of their funds. However, such thinking is completely unjustified when it comes to eChecks. For starters, eChecks can be reversed after being initiated, which is not something that can be said for wire transfers, which have their benefits.

Secondly, these checks feature encryption and tokenization, which is how they are able to prevent fraud and theft. And not only that, but they also keep both parties safe and secure, as a business can decrease the chance of getting a bad payment, and the client can be sure that his/her personal information is going to remain secure.

The bottom line

Quick, easy, and secure – those would be the three words most suitable to use when describing eChecks. Using the electronic form of paper checks makes it possible for you to process payments from anywhere in the world – and at a low fee at that. Since everything is done online, all you need is a PC or a phone with updated apps and a stable Internet connection. Likewise, you can make payments both big and small, and you can even pay rent and your monthly car installments through eChecks. Give it a go and we have a feeling that you won’t be able to go back to other forms of payment any time soon.