Reducing the collection of cash and paper checks is possible when taking advantage of the many digital payment options available. E-checks—or electronic checks—are a popular alternative to paper checks and wire transfers. Some reasons to use e-checks include:
- They are cost-effective and simple for both you and your clients to use.
- They can be used to pay for e-invoices that you create and send electronically to clients with the click of a mouse.
- Clients securely enter their account and routing numbers and click submit to make the payment.
- Clients receive an automated emailed receipt upon the successful completion of the payment.
TransAct offers e-check merchant processing with all of our merchant services accounts.
E-Check Merchant Services
E-checks are bank transactions without wire fees and are much lower in cost than a credit card payment because there are no percentage-based fees associated with the payment. Our clients have the freedom to collect electronic check payments, saving both time and money.
Although they may sound similar, paper checks and e-checks are not the same things. One of the biggest differences is the extra time it takes for your client to pay with paper checks. They have to get out their checkbook, write the check, find an envelope and a stamp, and put it in a mailbox, all for you to receive it days later. Additional time is lost in the process of a paper check being opened, processed, recorded, and endorsed before it can be taken to the bank to be deposited.
E-checks, on the other hand, eliminate many of the time-consuming steps associated with traditional paper checks and help you get paid much sooner.
E-Checks vs. ACH Payments
E-checks are also different from ACH—Automated Clearing House digital payments—which can take several days to process, similar to paper checks. It’s important to note that while TransAct does not assess a percentage-based fee on an e-check transaction, some merchant processors do charge a base fee AND a percentage of 0.5% to 1.5% on the amount paid.
E-checks can also be called electronic checks, digital checks, EFT (electronic funds transfer), bank transfer*, and bank payment*.
* Note: These last two are not the same as a bank check which is a physical, paper check issued by a bank as requested by the account holder. This term is not typically used in the US and has been known to cause some confusion.