First, what is the eCheck?
An eCheck is the electronic version or representation of a paper check. eChecks: + contain the same information as paper checks contain + are based on the same rich legal framework as paper checks + can be linked with unlimited information and exchanged directly between parties + can be used in any and all remote transactions where paper checks are used today + enhance the functions and features provided by bank checking accounts + expand on the usefulness of paper checks by providing value-added information How do echecks work? eChecks work the same way a check does. + the check writer “writes” the eCheck using one of many types of electronic devices and “gives” the eCheck to the payee electronically. + the payee “deposits” the Electronic Check, receives credit, and the payee’s bank “clears” the eCheck to the paying bank. + the paying bank validates the eCheck and then “charges” the check writer’s account for the check. Why use echecks? eChecks have important new features. They offer:
