What is an electronic check service?
Electronic check services serve several purposes. They can convert a paper check into an electronic transaction (Check Conversion), they can verify the check writer against a database of check writers to see if there is a high risk of them writing a bad check (Check Verification), they can guarantee the value of the check to the business accepting it (Check Guarantee), and they can electronically draft funds from a checking account (Bank drafting, ACH). The most common types of check services available for businesses in the US are check conversion, check verification, check guarantee, ACH, bank drafting, eChecks, and a few combined services. What do they all do? • Check Conversion – Check conversion is the process of converting a paper check into an electronic transaction similar to a credit card transaction. To convert a check, the check must be physically run through a check imager or a magnetic check scanning device. The check is then deposited into a business’s bank account a few d
