Funds transfer are now more easier and more safer with e-check
ECheck which is commonly known as the electronic check is a form of payment method that is done with the help of the internet which is funded from the bank account of the buyer. With this mode of fund transfer, the recipient is supposed to receive the transferred money within 3-6 working days or business days.
ECheck transfer and instant transfer are somewhat same as well as different in some ways, both eCheck and instant transfer are two different ways to pay via the bank account, while in instant transfer process the money is received instantly by the receiver and in case of eCheck it takes 3-6 working days to get the money. In case of e-check transfer the only requirement is a valid bank account but in case of instant transfer, it needs to be backed by credit card or debit card, it has to be registered in the PayPal account first.
The eCheck payment method is totally digital; hence the desired amount can be transferred directly from the buyer's bank account to the receiver's bank account without any presence of physical instruments.
There is not much difference between an e-check and a printed check, because the processing time is same as both eCheck as well as printed or paper check takes the same amount of time i.e. 3 to 4 days and in case of eCheck, the person has to write a check online. If someone is making a payment through e-check method then the person should know that the shipping of your goods ordered will not start unless and until the check has been cleared.
Unlike in case of a paper check, eCheck transaction requires a routing number, a bank account number, a digitalized signature and an endorsement.
Process of sending money through eCheck:
If you wish to do a payment through eCheck method then the recipient should also have the PayPal account with him to get the amount or he have to register into a PayPal account for the transaction process to take place.
To initiate the transaction process you have to log in to your PayPal account and press on “send money” button. Then you have to type in the recipient’s PayPal address and the exact amount that you are willing to pay the receiver.
After that you have to press on the personal tab option to select what is your purpose of sending the money. The reason can be anything it can be your gift, or payment or other forms of payment. You have to click on the purchase button if you are buying some good or services from the person.
After that you need to then press continue button and then review your entire transaction details, if you do not have a checking account in that case you will have to click on the change option.
After that you will have to go to your funding options page where you have to press on “add bank account “button. Now here you have to enter the checking account number or your bank routing number.
In the next step you need to enter the recipient name and a small reason that why you are sending him the money. The reason can be anything or for any purpose, payment of rent, or a thank you message for the service provided etc.
After filling all the details have a quick look at the entire transaction details and press “Send Money” button to complete the transaction. It will take approximately three to five business days to for the eCheck to get clear. If you already have a checking account linked to your PayPal account then in that case the eCheck transaction may get processed immediately and money will be sent instantly. A backup credit card should always be listed on the account.
Before proceeding with the payment mode make sure that you have enough funds in your account to cover the eCheck, if you don’t not have sufficient money in the account then the bank will cancel your payment request.
Suppose if Instant Transfer option is not available in that case you cannot send an eCheck. Remember that your eCheck cannot be funded partially by a PayPal balance; hence the bank will always ask you for the full amount at a time.
You can always cancel the eCheck. If you want to cancel the e-check after the check is issued in that case you need to call your bank and settle the cause, in case if you wish to cancel the eCheck after it has been issued in this case you need to speak to your seller and ask him to refund you the entire amount.
Instructions for sellers:
If you want to refund the entire amount through eCheck in that case you need to maintain sufficient balance in your account as you cannot partially send the money through eCheck. The bank will always request you the full money for making the eCheck payment.
Benefits of doing eCheck payment:
The processing time for eCheck payment and printed check are the same, people sometimes find it easier to do it through eCheck as it does not involve any hassle of paperwork or going to the bank personally to deposit the check as it requires to be physically present to transfer the amount to the receiver’s bank account.
ECheck is considered to be safer and secure than the paper checks. In eCheck, the automated systems verify the details provided, and do the transmission and clear the funds and settlement of the accounts. These automated systems are highly regulated by the government. The e-check transactions are highly protected by high-end security systems.
In case of printed checks more numbers of people are involved and as we all know more the persons involved the more is the breaching.
The cost incurred in issuing an e-check is far lower than that of the paper check as e-check does not involve the cost of the paper and as this can be accessed directly online and it also does not require the costs of reaching the check to the desired destination.
Commonly used electronic checks:
The most commonly used electronic check method is through direct deposit system. This method has been offered by many employees during transfer of their wages through online transactions. It is also very helpful for taxpayers where the taxpayers can due to a refund on the federal tax returns and can through IRS (internal revenue service) can select to receive the deposited electronic check.
How can a business get the eCheck merchant account?
The process by which you sign for an eCheck account for an ACH merchant account is the exactly same as in the case the credit card merchant account.
Once the business has received the merchant account the next step will be providing the following information, information like federal tax ID, years in business, and what are the estimated transaction volumes.
This information provided will be approved by the payment processor or merchant account provider which will take a few days of time.