What is an electronic check?
An electronic check is a one-time, electronic funds transfer from your bank account that allows you to pay a government agency or other entity via the Internet or Interactive Voice Response (IVR), without actually writing a check. It is essentially an electronic version of a paper check, which includes date, payee name, dollar amount, digital signature, bank account number and routing number.
An electronic check is an form of payment whereby the money is transferred electronically from a buyer’s bank account to the seller’s bank account. These transactions are called electronic checks because the merchant or biller uses a check as a source document for the consumer’s account information (RCK, POP, ARC) or the consumer is prompted to use their check as a reference to provide their account information (WEB, TEL).
An electronic check is a way of paying for an online filing using a checking account. If you select the electronic check option for payment, you provide the routing or account numbers at the bottom of your check. The payment will then be deducted from your account. You do not need to mail the paper check to our office.
An electronic check is a convenient Internet purchase instrument that many Internet shoppers (your customers) use. It works just like a paper check, except it is processed electronically and it clears faster than a paper check. A customer uses funds from a savings or checking account when paying by electronic check.
The technology of tomorrow is here today! Imagine our customer handing you a check:Check Reader Terminals • You enter the requested data into a point of sale terminal • You slide the check through the check scanner Instantly, an image of the check is created and stored inthe check scanner! Instantly, an electronic transaction request is transmitted for apporoval! Instantly, a receipt is printed which the customer signsallowing for ACH funds transfer! • Image the receipt by sliding it throughthe check scanner • Hand the check back to the customer • Funds are transferred to your account within 24 – 48 hours • “Electronic” checks which bounce hit SPS’s bank account, not yours! Save on individual deposit item charges, bad check fees, banking time and effort, deposit ticket costs, and cash flow delays.
