More than half of the bills Americans pay are paid electronically.
Can you blame them? Almost all of us have a computer or a smartphone, and receiving and depositing money electronically is as simple as the push of a button.
With how busy our daily lives are, simplicity and convenience are the top priorities for most of us. Well, sending an eCheck makes this process even easier!
To learn about what eChecks are and how they’re sent, keep reading!
What is an eCheck?
An eCheck is money that is electronically transferred.
To use this form of online payment, funds are electronically withdrawn from the payer’s checking account. The check is then sent to the payee’s checking account. eCheck can be used for employers to pay their employees, or for customers to pay a business.
Both parties should authorize this payment method before moving forward, regardless of the relationship between the parties.
Sending an eCheck
Sending eChecks is a simple and efficient way to receive payment from customers and to pay employees.
Here’s how to send a eCheck:
- Authorization Request
Before you can send an eCheck, it’s important to gain authorization.
To do this, an online payment form must be signed. This grants authorization from the customer to the business. This authorization can also be made via phone call.
The point of granting authorization is to ensure that both parties agree to this type of payment.
- Setting Up Payment
Once the transaction has been authorized, it’s time to set up a payment plan.
For this, the business will plug their information into the processing software. If the payment is going to be recurring, the business will want to set up the schedule for this.
Whether payments are disbursed weekly, bi-weekly, or monthly, this preference can be set up in the online processing software.
- Submit and Finalize
Before the payments will begin, you’ll need to finalize and submit your information.
Make sure that all your payment information is correct. Also, double-check your payment schedule to be sure that it’s accurate. Once you’ve finalized these details, you can submit the information into the software.
- Payment Will Begin
Once you’ve finalized and submitted everything, payments will begin according to schedule.
The funds will automatically be withdrawn from your customers’ accounts as scheduled in the system. Once withdrawn from the customer account, the funds will be deposited straight into the business bank account.
It usually takes around 3-5 days for funds to be available to the business.
Are eChecks Right for You?
eChecks are a very convenient and simple way to distribute money.
Not only is setting up a payment schedule simple but going paperless is great for practicing sustainability in your business! The days of running to the bank to cash a check can be a thing of the past.
So, when it comes to sending an eCheck, you can confidently set up the schedule according to you and your other party’s needs.
If you enjoyed reading this article, don’t forget to check out our other financial content!