Safe and secure transfer of funds through electronic check transfer (eCheck)
Electronic check or ECheck is a form of payment that is done through internet and is funded by buyer’s bank account. In this process, the recipient receives the money within 3-6 business days or working days.
The process of instant transfer and ECheck are somewhat same as well as different in some ways, in both the process the transfer is done through a bank account. In case of instant transfer the money is received by the receiver instantly and in case of eCheck, it takes about 3-6 working days for the money to get transferred to the receivers account. For transfer through ECheck you only need a valid bank account but in case of instant transfer, you need to back it up with your debit card or credit card which is registered in PayPal account.
As the ECheck method of payment is totally digital so the funds get transferred from buyers account to the receivers account directly without any physical instruments involvement.
There is no difference in case of a printed check or paper check and ECheck as both of it takes same processing time of 3-4 days, in ECheck the sender has to write an online check. If someone is doing payment through ECheck then it should be clear to him that the shipping of the goods will not start unless the check gets cleared.
As in the case of a paper check, the eCheck requires a bank account, a routing number and a digitalized signature along with an endorsement.
Money transfer through e-Check:
If you are paying someone through eCheck then the recipient should have the PayPal account so he receives the sent amount or he needs to register into PayPal account to complete the transaction.
Just log in to your PayPal account and press the “send money” tab, after that enter the recipient’s PayPal address and then enter the exact amount that you want to transfer.
After that press on personal tab option to select the purpose of sends the money, the purpose can be anything like a gift, payment, or anything. Select the purchase tab option if you are buying something from the person like goods or services.
Click on the continue button and review the entire transaction once again. Click on the change option if you do not have a checking account.
Go to the funding option page and press on “add bank account” button. Now enter checking account number. You can also enter your bank routing number here. After that enter the recipient’s name and a reason for sending the money, the reason can be anything like rent payment or just a thank you message for the service that has been provided to you.
Just go through the entire transaction details and click on “Send Money” button to complete the transaction process. Approximately it will take 3-5 business days for the eCheck to get cleared.
But if you have checking account already linked to your PayPal account then this transaction can get processed immediately and the money will get transferred instantly. A backup credit card should be always listed on the account.
Make sure you have enough funds in your account to cover the check before you proceed with the payment option. If you don’t have enough funds in your account then the back will cancel your payment request. You need to have Instant Transfer option available to you to send an ECheck. The ECheck cannot be partially funded by PayPal balance. To complete the processing bank will always ask for the full amount.
You can also cancel the ECheck once it is issued if you want to, for that you need to call your bank and tell them that you want to cancel the ECheck and settle the cause, in this case of cancellation you need to talk to the seller and tell him to refund you the entire amount.
If the seller wants to return the entire money through ECheck then he needs to have sufficient funds in his account, as partial payment is not possible through ECheck and the bank will request you to pay the full amount for ECheck payment
ECheck payment and its Benefits:
As we already know that the processing time taken by Printed check and ECheck are the same but sometimes people prefer to go for ECheck payment mode as they find it easier as it does not involve any paperwork and you don’t even have to go to your bank to deposit the check. You can sit at your home and can do the transaction without being physically present in the bank and the receiver will get the money in his account.
It is also considered to be the safest and the most secure way of transferring money than compared to a paper check. In eCheck, the system verifies the details and does the transaction of funds and settlement of accounts. The systems are automated and are regulated by the government itself, which makes it highly secure because of the use of high-end security systems.
But in case of printed check the involvement of people are more, and as people are more, the breaching chances also increase.
The ECheck are very cost effective as compared to a paper check. It totally reduces the paper cost as it can be done online and the cost of reaching the check to its destination is also taken care of.
Commonly used electronic checks:
Direct deposit system is the most commonly used electronic method. It is most commonly used by organizations for giving salary to the employees, which is initiated through online transaction. This system is also helpful in paying taxes, in this, the taxpayer can due to a refund of the federal tax
Return through IRS (internal revenue service) can choose an option to receive the deposited electronic check.
ECheck merchant account for Business:
It is the same process you use to sing in for an ECheck account for an ACH merchant account. It is same as the Credit Card merchant account.
In this process, once the business receives the merchant account it needs to provide the following details. Details like federal tax ID, number of years in business, and the estimated transaction volumes.
All these information provided needs to be approved by the payment processor or merchant account provider; this process will require a few days time.