Why eChecks are growing in Importance in the Payment Industry?
Businesses & individuals have been using paper checks for years. eChecks, or the modern version of paper checks have come into existence with the rapidly changing era that fosters digitalization to optimum extent. eChecks provide an edge over paper checks in a number ways and that’s the reason why the popularity of these “digital checks” is increasing day-by-day.
A quick overview of the benefits associated with eChecks will clarify the importance to a far better extent. Let’s take a look –
Security is always assured with eCheck…
Paper checks lack the various online security features that eChecks come backed with. A number of ways exist for ensuring high-end security while deploying eChecks like –
- Digital signature – It involves online identity authorization
- Public key inscription – It allows to verify if funds are tampered in the process
- DuplicateCheck detection – It main purpose is to prevent fraud
Most importantly, eChecks have the same legal framework like regular checks; hence, when merchants & consumers transact via eChecks, they can stay assured of staying protected.
eCheck Processing takes lesser time…
Paper checks involve a lengthy process of verification that adds up a negative against them. You need to run through the paper check via an electronic scanner in order to fetch the customer’s banking information and funds to be debited. In case of non-availability of scanner, you need to arrange for getting theCheck dropped in the nearest bank – that consumes significant amount of your valuable time. On the contrary, transactions via eChecks are swifter as these are straight away entered into payment process once a transaction is initiated. On completion and submission of the payment form, the automated process gets initiated.
There are Other Benefits as Well…
- Embrace Green – eChecks promote a paper-free transaction process by shrinking the use of paper checks.
- Minimal Errors: Due to process automation, the chances for error are reduced to bare minimum.
- Lesser Processing Cost: Compared to physical checks & credit cards, eChecks pose a lower processing cost on the merchant.
- ACH Network: eCheck processing is based on the ACH Network that offers a reliable system for managing direct deposits.