Are you looking to collect eCheck payments from your clients? Accepting eChecks is a bit difficult for most companies to do by themselves. Especially small businesses, mostly because it requires robust software and advanced technology to ensure secure transfers.
Nonetheless, it is one of the easiest and most flexible means of electronic payment. Therefore, integrating this payment solution into your business can benefit it immensely. With the assistance of a reputable merchant account service provider, such as Payment Savvy, you can safely accept electronic checks online or via phone.
Interested in introducing this form of payment in your business but confused about how it works? Look no further – here is a complete guide on how to accept eChecks online or via phone!
Let’s Start by Defining an eCheck
Known in full as an electronic check, it is a mode of online payment in which funds are withdrawn from the payer’s checking account. From there, funds deposit to the payee’s checking account. These funds transfer via the ACH (Automated Clearing House) network.
This process is best achieved by seeking the services of an esteemed payment provider to obtain an ACH merchant account. As a business, you will be able to directly withdraw payment for goods or services from the bank of your client. eChecks work similarly to paper checks. The only difference is the process is completed electronically.
Note that, a successful payment transfer can only occur
after the customer authorizes the payment by doing the following;
- Signing a contract – an online payment form
- Accepting the terms and conditions of a payment
- Recording a voice transaction authorizing the payment via phone
How eChecks Process
As mentioned earlier, eChecks are similar to paper checks, so there is a mode of processing. eChecks are processed faster via an electronic network and you don’t need to waste time physically depositing the checks at a bank.
To process an electronic check, you must go through the following steps:
1. Get Authorization from your Customer
An eCheck can’t be processed without the authorization of the customer or concerned party. As a business, you can seek approval via phone or online payment form.
2. Set Up Payment
Once the customer authorizes the payment, the business should key in the particulars of the payment through your virtual terminal or direct via your software provider. During payment set up, you should indicate the nature of the payment, whether it is one-time or recurring.
3. Begin the ACH Transaction Process
Having completed all the above steps, you should save or submit the payment so it can begin the process of going through the ACH network to obtain the funds.
4. Confirm Receipt of Funds
You can conclude the success of an ACH transaction by acknowledging receipt. It may take 3 to 5 business days for the funds to reflect on your business bank account. Don’t forget to thank the client for the payment.
The Bottom Line
Hopefully, you’ve learned how eChecks make transactions faster, easier, and more flexible for your business. Not to mention, it showcases professionalism and the ability to offer convenient payment methods for your customer base.
Payment Savvy offers a straightforward and fully integrated ACH payment platform. Our payment solutions are encrypted to ensure both you and your clients’ financial data remains safe and secure. Reach out to us today – we’re here to answer all your questions and provide you with the best payment solution for your business!