Technology advances by the minute and because of this we have many new electronic innovations. Electronic checks have been in the market for some time now and consumers enjoy the ease and convenience of this method. At Payhub we offer electronic checks, where we provide a service that converts paper checks into electronic point-of-sale checks and accepts ACH payments as well. These checks are deposited straight into your bank account, saving time and effort. Let’s discuss electronic checks more in detail.
What is an electronic check and how does this process work? An electronic checks is a type of online payment where electronic money can be withdrawn from the payer's checking account, transferred to an ACH network and then deposited directly into the one being paid's checking account. Consumers like to know the process that their financial information processes through.
The first step of an electronic check is initiated when the customer writes a paper check at point of sale. Businesses are not allowed to obtain customer’s information without their permission.
The second step involves authorization, but is very simple. The customer verifies the business using an online payment form, an order form signed by the customer or have simple communication over the phone. Now it’s time for setup. The business punches the payment information into an online payment processing software and then it continues onto the final step.
Once all information is entered correctly including routing number, check number, and account number, a “save” or “submit” button is pressed and the ACH transaction begins. The customer’s payment information is automatically taken from their account. The customer is then sent a receipt with the check writer's signature and the transaction information. The actual payment is then deposited into the businesses banking account, which usually takes no longer than three business days. The payment transaction, since done electronically, appears on the customer's bank statement not as a check, but a debit. This process is very similar steps to the traditional paper checking process, but is just done electronically eliminating wasted time, effort, and paper.
Luckily for consumers, this can all be done easily, quickly, and correctly with our services and equipment at PayHub Payments. To find more out more about the process visit our website or give us a ring.