Archive for November 2015

Get Comfortable Using eChecks Because They’re The Future

You should probably get comfortable using eChecks, because they are the future. Banks, merchants, and customers alike who are familiar with the new offering are all clamoring for greater ability to pay via eCheck. An eCheck, or electronic check, allows customers to send a check electronically that is instantly deposited in the merchant or the bank’s account. There is no wait and verify period as there is with banks. The checks can be sent and deposited anytime, including after business hours. This makes eChecks popular with freelancers and those who work outside societal norms.

eChecks are significantly cheaper for banks than processing traditional checks. That’s because traditional checks have to be handled by a bank teller, inspected, and checked for any fraud. Those costs aren’t there with eChecks because everything is handled and verified electronically. Because banks view eChecks are more efficient, they are pushing them for merchants and customers, and buyers often find that the products and services that can be purchased via eCheck come at a significant discount. With the momentum behind eChecks going strong, you can expect them to be a major offering of banks going forward. Banks, as well as credit card processors such as, will be looking to use electronic check processing in the near future.

Still, there are some people who are skeptical of eChecks. While there are multiple ways to dispute a credit card charge, and there are state and federal protections, there aren’t nearly as many protections offered to customers who use eChecks. The only way you can get your money back after an eCheck dispute is if the eCheck was sent without your authorization, if the check was deposited at an earlier date than the one listed, or the amount processed in the transaction is different than the amount that was listed on the eCheck. Those are obviously very limited circumstances, and that doesn’t make sense for an offering that is set to be used far more often in the near future. It would make sense for state and federal regulators to take a long look at offering new protections for consumers, as credit cards already have strong protections.