If you are offering just Cash of Credit Cards as payment option in your business, you are missing a large amount of customer base who are paying by checks. As one survey says ‘most of American who not having credit card does payment through checks’. So you are avoiding the one most powerful opportunity. Before you go for electronic check processing, you have to know basic about electronic check processing.What is Electronic Check?
Electronic check is merely same as paper check; you can say that it is electronic edition of paper check. It has all details like paper check, date, payee name, signature, amount and endorsement. This check is facilitated with a secure electronic file where drafter mentions purpose of the check. Electronic checks are processed as paper checks. It is signed, endorsed, deposited, cleared and settled.
Paper Check v/s Electronic Check
Paper check get processed, cleared and settled even though there can be errors in paper check payment system. Error like omitted dates, incorrectly encoded amount or failing to read the check by processing equipment. Besides this error check get passed.
There have not any room for errors in Electronic check processing. Before processing of electronic check, it must be perfectly created and digitally signed by an authorized party. This type of payment system prevents incorrect payments completely.
How does this process be efficient?
Electronic check processing is efficient through 2 types of tool.
1. Encryption Tool: This type of tools enables you to provide public or private key pairs, authentication certificate which offer more security to the check processing transaction.
2. Utility Tools: This type of tools enables to unlock the software and other functionality of check processing.
With this type of tools electronic check processing becomes more secure and speedy.
How electronic check processing does benefit you?
1. They are faster in clearing as paper check.
2. They are with fewer errors.
3. Elimination of manual steps of processing check.
4. Transaction becomes more secure by digital signature, authentication signature and public or private key.
5. Reduce your operating cost.
6. There are fully protection against alteration and forgery because of fully automated system.
7. Settlement becomes easy because check numbers are assigned by payers.
8. You can track record of truncation very easily with the help of log generated while electronic check processing.
9. You can save up to 25% on processing charge compared to credit card processing.
For current business practices, Electronic check processing is best option for accepting and making payments. Electronic check processing eliminates the costly. Electronic checks can be connected with boundless information and can be openly exchanged between parties.
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