An eCheck is the short form of “electronic check,” and it remains the most critical payment method because of the process. Let's know about the process!

1. Do You Know How ACH And Echecks Are Different?
eChecks and ACH are pretty similar, and both terms are used interchangeably. ACH works as the
‘Automated Clearing House’ network, the process used for transferring money electronically from
one bank account to another. An eCheck is the short form of “electronic check,” and it remains the
most critical payment method because of the process.
ACH Processing
With the help of an automated clearing house, you shall use the information linked with your bank
account to manage payments. ACH is used to designate a credit to your account, including direct
deposit from your job. ACH also helps in making it easier and more convenient to pay bills. For
an assumption, when a consumer pays for the bill through the power company, he must use their
account and routing number. This is the overall significance that ACH carries.
eChecks
Electronic checks remain similar to paper checks and do not remain in the bank’s obligation.
Moreover, they combine the transaction and authorization within the same document. Sometimes,
the bank also makes the payment to receive approval for the transaction. As a result, eCheck allows
banks to handle risks conveniently and remains applicable for any customer using the checking
account. This is why electronic checks remain popular among small-sized medium businesses.

2. Give a Read to Know the Major Difference between ACH and eCheck services
The main distinction between ACH and eChecks is that the party can keep the payment information
and send the payments directly. For an assumption, ACH is managed by specific entities to put on
the enrollment forms to establish a recurring debit from their chosen account. It will help in
processing monthly or quarterly debits and is used for updating the payment amount for customers
who used it.
Electronic checks and ACH are similar and showcase different transaction types based on several
business models. Their information flow remains various, and several legalities surround them.
Their information flow remains different and remains distinct in terms of risk management. It stays
good for consumers and merchants, allowing other services and products to meet different needs
and requirements. Electronic checks are entirely based on newer technology and did not remain in
existence when ACH got introduced primarily.
ACH payments are electronic transfers that rely upon bank routing numbers and bank account
information to transfer payments between two or more banking institutions.
It usually takes around 1 to 3 business days to process ACH transactions. Therefore, ACH
payments are favored for their lower costs than wire transfers or debit cards.
ACH payments are usually used for recurring fees, direct deposits, and large-sized transactions. In
addition, the bank information provided for ACH payments gets stored for future online payments.
ACH and eCheck processing usually take some time, like one to three business days. eChecks
work as one-off payments, and several steps are required to verify and be authorized. Next, the
merchant account needs the green light to process the eCheck through the ACH network. Finally,
the eCheck is submitted and can take around 24-48 hours. eChecks usually take about two to five
days to process.
Moreover, different payment processing providers carry other processing fees, and giving
traditional values becomes difficult. So, this is why it remains widespread to attract additional
processing since there remain no extra steps involved in eCheck processing verification. eChecks
that usually bounce also fetch extra processing fees. On the other side, ACH return and chargeback
fees can be applied in this case. They also differ and depend upon merchant services accounts.

3. Read To Know The Similarities Between eCheck and ACH payments-
Since we have highlighted the differences, their similarities will become evident. ACH payments
and eCheck processing services are processed through the ACH network. Both works with
electronic funds transfer to transfer funds from one financial institution to another. They move
from one bank to another apart from traditional payment processing in which credit card payment
is involved between them.
Conclusion
ACH payments should be considered essential for accepting eCheck processing services. The
processing fees are low and high in security, and I greatly appreciate the convenience. In addition,
transfer originates straight from customers’ accounts other than their cards and allows them to
avoid specified fees, and the same set of benefits are offered to merchants.
So, implementing these payment solutions is simple, and merchants can easily set up an ACH
payment gateway that facilitates the ACH payment process through a suitable payment processor.
With this setup, merchants can request customers’ authorization to utilize this payment method.
This is why payment details are usually set up, and the payment information gets submitted.
Originally Published: https://bit.ly/3ByUpua