eCheck/ACH is a payment method that allows buyers to transfer directly from their checking account into your bank account. Funds are typically available 3-4 business days after the transaction occurs; you can use it 7 days of the week, 24 hours per day.
eChecks are a great way to do business seven days a week, as these direct transfers between bank accounts occur regularly. They only take about three or four weeks before becoming available in seller’s account balances though, so it may not be the best option if you require instant access to money from your customers’ purchases.
How Does It Work?
eChecks are a great way to accept payments from your buyers. The buyer will have the option this as an available payment method during checkout and must verify their bank account in order for you to process transactions (i.e., give them money).
Once they provide necessary information, they’ll be able enter how much is owed through eCheck processing by selecting their bank’s name on the site at which point it will allow users to proceed with entering amounts due/owed when purchasing items online
When you’re checking out, please choose between PayPal or a credit card. When the payment process is complete and accepted by both parties, there will be a statement that appears where it tells all terms of what they are agreeing to before completing the purchase.
Benefits:
- eCheck is a safe and secure payment method.
- Lower risk of non-payment as it requires a signature from the buyer upon completion of order before the payment can be sent to your bank.
- It enables fast order processing as the funds are available immediately by 3-4 business days after acceptance of the check.
- It provides more payment options to your buyer as they can choose which way they want to pay.
- eCheck does not have a transaction fee; hence it is a free service.
Limitations:
- You must have a US bank account to accept eChecks. You need a valid routing number and account number from your bank to accept eChecks.
- You cannot use a prepaid debit card or credit card as they will not work with the system.
- eChecks are only available in the US, and it is at the discretion of your buyer whether they can pay by eCheck or not. If you have both options, we recommend enabling the eCheck option so your buyers can choose to pay with a check or credit card.
- eChecks are not available to residents of New York State.
- To enable eCheck as a payment method, please follow these steps: Go to My account > Payment settings and select “Enable eCheck as a payment method.”
- It is essential to mention that when you enable eCheck as a payment method, the customer will check out and choose this option. However, they do not have to pay by eChecks and may opt for another form of payment such as credit or debit card.
Things to remember:
- eChecks are only available in the US.
- There are fees associated with the use of eChecks.
- The money comes directly from your buyer’s checking account— not a prepaid card or credit card.
- You can choose to receive an email once you have been paid, which is good for busy sellers who don’t have time to check their accounts daily or weekly.
- There are no refunds on payments made through eChecks. So, only allow this method when you know the customer and trust they will pay you.
- If your buyer complains that they did not receive an eCheck payment, please contact us immediately through the ‘Contact Us form, and we will investigate it for you.
- Your buyer’s bank may take up to 4 days to show the money in your account.
Electronic Transaction:
eChecks can be an excellent option for your buyers and sellers. They provide the buyer with an electronic transaction, which is safer than giving credit card information over the Internet. In addition, it is very fast because of its ability to pull funds directly from your customers’ checking account; you can choose whether or not you want to accept eChecks as a payment method, so please take the time to review all of the benefits and limitations before making a decision.
ACH Transactions:
ACH stands for Automated Clearing House, which is the network that transfers these transactions between banks.
An ACH transaction occurs when one financial institution transfers money from your account to another, such as when you transfer money from your checking account into your savings account.
To do this, the bank of the person initiating the transaction permits another financial institution to transfer funds from one of its customer’s accounts to another.
Conclusion:
eCheck and ACH are both great ways to receive payment for your products. Depending on your customers, you may experience more sales from allowing each of these options. It is possible to accept both ACH and eCheck payments, but you can only have one payment option active at a time.
However, eCheck and ACH are great options that can save you money in processing fees. These payment methods allow you to focus on what matters most – growing your business!
