Electronic checks are designed as an alternative to cash payments and utilize digital signatures, certificates, and public key cryptography for security and authentication. They contain the same information as paper checks but are initiated, signed, and endorsed electronically. This allows for enhanced functions like carrying additional information, automatic verification, and effective dating while maintaining the legal framework and features of paper checks.

2.  Electronic cheque are designed to
accommodate the many individuals and
entities that might prefer to pay on credit or
through some mechanism other than cash.
Electronic checks are modelled on paper
checks, except that they are initiated
electronically, use digital signatures for signing
and endorsing, and require the use of digital
certificates to authenticate the payer, the
payer’s bank, and bank account. The
security/authentication aspects of digital
checks are supported via digital signatures
using public-key cryptography.

3.  E- Cheques- contain the same information as
paper checks contain
 are based on the same rich legal framework as
paper checks
 can be linked with unlimited information and
exchanged directly between parties
 can be used in any and all remote transactions
where paper checks are used today
 enhance the functions and features provided
by bank checking accounts
 expand on the usefulness of paper checks by
providing value-added information

4.  the ability to conduct bank transactions,
yet are safe enough to use on the Internet
 unlimited, but controlled, information
carrying capability
 reduces fraud losses for all parties
 automatic verification of content and
validity
 traditional checking features such as stop
payments and easy reconciliation
 enhanced capabilities such as effective
dating

5.  E-Check and Paper Checks
The electronic check (e-Check) is an all-electronic
enhancement to the paper check and is based on
current check law. This white paper briefly compares
paper and echecks, based on five categories:
usage, cost, and allowance for errors, risk
management, and information richness.
 E-checks and Debit cards
Debit cards are used by individuals and to a far lesser
extent by businesses, to make payments at the retail
point-of-sale, or to obtain cash from ATMs. This white
paper will briefly compare the differences between
debit cards and e-checks.

6.  E-cheque and Automated Clearing House (ACH)
 Since electronic checks are debit transactions, this
white paper provides a high level comparison of
some of the main differences between the ACH
debit system and echeques. These differences are
reviewed in five main categories: terminology,
business practices, underlying technology,
transaction authorization, and risk management.
 E-cheque and Secure Electronic Transaction (SET)
 The SET protocol specifications were defined by the
credit card industry to facilitate credit card
purchases over the Internet. This white paper briefly
compares the differences between SET and e-
checks.

7.  can be used by all account holders, large
and small, even where other electronic
payment solutions are too risky, or not
appropriate
 is the most secure payment instrument
available today
 provides rapid and secure settlement of
financial obligations
 can be used with existing checking
accounts
 can be initiated from a variety of hardware
platforms and software applications