 What is e-Check?
What are the benefits?
Who is e-Check available to?
What are the avaialable transaction types?
What is the check process?
What is eCheck.Net?
eCheck.Net is a payment service that allows merchants to accept electronic check payments for goods and services purchased using several methods, including mail order/telephone order and e-commerce Web sites. It also allows merchants to collect paper checks and convert them into electronic checks.
An electronic check works much like a regular check, only instead of using a paper check to provide their bank account, routing number and payment authorization, the customer provides the merchant with the necessary payment information through other methods, allowing the merchant to process the information electronically.
The eCheck service uses the Automated Clearing House (ACH) Network to process fund transfers from customer bank accounts to merchant bank accounts. The ACH Network is the group of financial institutions and similar entities within the banking industry that work together to facilitate the processing and clearing of electronic check payments. eCheck transactions are strictly governed by ACH processing rules established by the National Automated Clearing House Association (NACHA), in addition to the Electronic Funds Transfer Act and Regulation E, as established by the Federal Reserve Board.
What are the Benefits?
Lower Fees – Lower rates than credit cards or PayPal.
More Efficient – eCheck.Net does everything online, eliminating the cost and inconvenience of manually processing paper checks and waiting for checks in the mail.
Fully Integrated Solution – No third-party integration required—implementing eCheck.Net is easy for merchants already using the Payment Gateway.
Integrated Reporting – Provides a combined view of all eCheck.Net and credit card payment transactions. Reconcile payment and billing activity using online reports and statements.
Ship Product Sooner – Improved up-front transaction validation that returns the status of transactions faster.
Security – The gateway uses the latest 128-bit Secure Socket Layer (SSL) technology for secure Internet Protocol (IP) transactions.
Who is eCheck Available to?
The eCheck service is available to merchants that are:
U.S. citizens or residents that are at least 18 years of age and have been issued a social security number (SSN).
United States based corporations, (e.g., limited liability companies (LLCs), limited liability partnerships (LLPs) or sole proprietors) that only use the eCheck service for customers using U.S. bank accounts and hold and maintain a bank account in the United States with a U.S. based financial institution.
What are the Available eCheck Transaction Types?
Accounts Receivable Conversion (ARC)
ARC is a single-entry debit against a customer’s checking account. ARC allows merchants to collect payments received in the mail or left in a drop-box, and convert them to an electronic payment later. Merchants do not return the check to the customer or present it to the bank for payment.
Back Office Conversion (BOC)
BOC is a one-time charge transaction against a customer’s checking account. BOC allows merchants to collect a check written at a point of sale (checkout counter, manned bill payment location, service call location) and convert it to an ACH debit during back office processing. Merchants do not return the check to the customer or present it to the bank for payment.
Cash Concentration or Disbursement (CCD)
CCD is a charge or credit transaction against a customer’s business checking account. One-time or recurring CCD transactions are typically fund transfers to or from corporate entities.
Prearranged Payment and Deposit Entry (PPD)
PPD is a charge or credit transaction initiated by a merchant against a customer’s personal checking or savings account. All credit transactions to personal banking accounts must be submitted as PPD, regardless of the original transaction type.
Telephone-Initiated Entry (TEL)
TEL is a one-time charge transaction against a customer’s personal checking or savings account.
Internet-Initiated Entry (WEB)
WEB is a charge transaction against a customer’s personal checking or savings account. One-time or recurring WEB transactions may be originated by Internet.
What is the Check Process?
Step 1: A customer initiates an electronic check transaction, with authorization to charge their bank account, via Web form or mail order/telephone order. Once the transaction is submitted, order and payment information is securely transmitted via the Internet to the eCheck Payment Gateway. The transaction is accepted or rejected based on initial data validation and security criteria defined by the payment gateway.
Step 2: If accepted, eCheck formats the transaction information and sends it as an ACH transaction to its bank (the ODFI) with the rest of the electronic check transactions received that day.
Step 3: The ODFI passes the transaction information to the ACH Network for settlement. The ACH Network uses the bank account information provided with the transaction to determine the bank that holds the customer's account (the RDFI).
Step 4: The ACH Network instructs the RDFI to charge or refund the customer's account (the customer is the Receiver).
Step 5: The RDFI passes funds from the customer's account to the ACH Network. The RDFI also notifies the ACH Network of any returns (in the event that funds for a transaction could not be collected from the customer's bank account) or chargebacks (in the event that a customer disputes a purchase). In the event of a returned transaction, eCheck will post the return to the merchant.
Step 6: The ACH Network relays the funds for the transaction to the ODFI.
Step 7: The ODFI passes any returns to eCheck.
Step 8: After the holding period, eCheck initiates a separate ACH transaction to deposit funds to the merchant's bank account.
For more information or a quote call 800-225-3400
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