people having a meeting at work

The Small Biz Guide to Electronic Check Processing

Having multiple payment methods is beneficial to everyone involved in a business. After all, more customers are willing to shop at a business that supports their preferred payment option. One payment method you might have heard of is electronic check payments. Read on further to find out how you can expand your payment options with this method.

Defining Electronic Checks

Electronic check processing, or electronic check processing, is a simplified check cashing through the medium of digital checks. Using electronic checks as a payment method, you can easily withdraw payment from the client through the Automated Clearing House (ACH) network. Often, opting to use electronic checks provides customers fewer fees and less hassle compared to other payment methods.

Electronic check: Combining Ease of Use with Versatility

Incorporating electronic check payments into your day-to-day professional use benefits both you and your client. After all, electronic checks are more convenient for them to pay with compared to traditional credit cards. Here are a couple of critical differences between electronic checks and credit cards:

  • Processing fees for electronic payments are lower than traditional credit and debit card payments.
  • Taking care of an expired electronic check can be less of a hassle than an expired card, depending on the provider.
  • Customers can’t easily file chargebacks compared to other mediums of payments. Plus, there’s a smaller window to file for chargebacks.
  • Electronic checks are popular amongst clients who prefer cash or checks rather than credit cards.

The fees for electronic check payments mainly differ between platforms but should still cost less than credit cards. However, there are essential fees that you should look out for. Namely: payment gateway fee, monthly fee, equipment fee, monthly minimum fee, batch fee, and more. These fees should be queried alongside the terms and conditions of the platform.

Incorporating Electronic Check Payments Into Your Business

Researching electronic checks is the first step to adding simplified check cashing to your business. If you’re ready for the next step, follow along below:

  • Get an ACH merchant account. This account will let you utilize the ACH network to transfer payments from your clients’ accounts. Merchant accounts are available through different platforms that offer electronic check services. Your estimated processing volume, your years in business, and a federal tax ID are the minimum requirements.
  • Ask for your clients’ permission. You need to request access from your clients to use the ACH network to withdraw payments. This process is similar to asking for a signature in paper checks. To request authorization, ask your clients to either: sign a contract, submit an online payment form, or agree in a recorded call.
  • Configure the payment details. Once the customer grants you the necessary authorization, you can then specify the payment details. Here, you can configure whether it’s a recurring payment, the routing number, and the payment amount. And last;
    Submit the payment information. The electronic check platform will do its job and start the ACH transaction. That’s it. You’re done.

working together

Attributes to Look Out for When Looking For Electronic check Platforms

There are multiple aspects you should be on the look for. After all, finding a reliable, transparent provider gives you and your clients seamless transactions with fewer problems. Below are important details to know when choosing an electronic check provider:

  • Transparency in published ACH rates and fees.
  • User-friendly and easy to configure.
  • Low contract fee with reliable service.
  • Easy-to-reach customer support.
  • Fully automated and requires less manual intervention.
  • Reasonable price plans that offer exciting deals.

These are the crucial aspects of choosing a reliable electronic check platform. However, fees and costs differ between various business types. Furthermore, you should select the provider that covers all your needs. Subscription-based companies, for example, benefit best from a provider that aids in recurring payments.

Secure Your Electronic check Payments for Both You and Your Clients

Similar to using online payment, electronic checks aren’t invulnerable to malicious attacks. While electronic check payments are often more secure and safer than a credit card, there are still security measures you can to prevent security threats. Take note, cyber-attacks could break your business. Hence, it’s crucial to secure all possible means a hacker can do to your account.

The first thing you should check for is the computers that have access to your business bank account. Secure all computers with a VPN and an antivirus to prevent malicious threats. It’s best to safeguard your internet firewall and update all security software. Next, regularly monitor your bank account. Log all withdrawal dates and their amount. If there’s any suspicious activity, report it to your bank manager immediately. And last but not least, do proper website etiquette. This includes: not opening suspicious links, emails from shady senders, and potentially malicious websites.

Thankfully, electronic check payments employ various security measures themselves. Similar to physical checks, electronic checks require authentication from both involved parties before processing. Plus, electronic check payments also encrypt all sensitive data. Encrypted data are hard to crack or borderline unusable to hackers. Another security measure is certificate authorities. These are digital certificates such as SSL certificates that protect information and secures all communication. And finally, all electronic check payments have duplicate detection that monitors all suspicious activity.

Now that you know all about electronic checks, it’s time to add that as a payment option to your business and make your customer experience a more positive one!

The Author


Most Popular

Recent Posts


Scroll to Top