E Checks

Written by Laurie Nichol
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There's been a lot of buzz in the industry lately about E checks. Taking funds from customers' checking accounts is critical to doing business, especially when so many Americans use checking as their number one way to pay for things. However, processing these traditional checks used to take a long time, and offer too much potential for fraud.

E checks, also called Internet checks, are a great way to avoid the many problems of traditional check processing. Accepting a check by phone has been a viable option for a little while, so why not accepting a check to an online business? E checks allow Internet retailers to access this large customer base.

How E Checks Work

Now, you can accept Internet payment in the form of customer checks! All that you need to do is set up a software program that allows you to input check information into your computer. The system then immediately contacts an ACH processing server, and instantly returns important information on that check's validity back to you.

Some of these programs have advanced algorithms that analyze irrational activity in a check-writer's account, and can help detect fraud to amazing degrees. Others simply return a guarantee that the writer's account is not overdrawn. And, the newest generation of E checks processing can let the merchant know right away if the check is guaranteed!

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