Electronic checks

Electronic checks are one emerging e-payment option. Due to electronic checks could be complicated this article will begin to explain the process of using electronic checks. The following paragraphs will take a view on this topic.

Through a process called check conversion, brick-and-mortar merchants can transform their customers' paper checks into electronic transactions that are processed through the automated clearing house (ACH) network. Funds are automatically deposited into their merchant accounts, usually within 48 hours.

To perform check conversions, a store owner must have an account with an electronic-check service provider as well as a magnetic-ink character recognition (MICR) check reader or a payment terminal that supports check conversion.

Benefits of check conversion include a reduction in bank charges from bounced checks,
electronic batch closing, which helps eliminate errors and reduces time spent preparing and reconciling deposits, electronic deposits, which reduce trips to the bank, reduced risk of identity theft for customers because merchants return paper checks to them at the point of sale, checks typically returned to merchants in days (paper checks may take weeks), allowing a merchant to cut off services sooner or begin the collection process when timeliness is critical.

The above described arguments deliver a satisfactory explanation why one could not exclude electronic checks as attractive alternative to credit cards.