Echeck Processing and its Technology

by Elizabeth Murrow   In today's world, most business practices make use of electronic checks. Electronic checks are simply an online version of paper checks. They can be used almost anywhere paper checks are also accepted. And since the use of electronic checks have a lot of advantages, more and more businesses are providing this form of payment technology. Electronic Check Processing makes use of a system that is secure, fast and efficient. It allows the processing of electronic transactions with well-established business processes and framework of paper checks. This article will discuss the technology used in electronic check processing. To implement electronic checks and other secure financial documents, the Financial Service Markup Language (FSML) is used. It defines a method used to structure documents in the form of tagged content. Electronic checks use a secure hardware to contain the signer's keys, sign and endorse electronic checks and provide automatic check numbering and registration. Unlike HTML, FSML uses tags to inform processors about how to display content and how to use that document in financial applications. Digital signatures provide a unique characteristic that helps identify the owner of the signature and the specific document in which it was used. It also provides tamper proofing and authentication. In order to create this digital signature, a private key is needed. Every private key corresponds to a public key. Public keys are available to anyone who needs to use it. A certificate can be used to reveal the public key to any entity that needs to validate the signature. All you need to do is to use a private decryption key to decrypt electronic checks that are mailed by the payer. Before it is transmitted, you have to register by email to be able to encrypt. Echecks are based on FSML, strong digital signatures, smart cards, digital certificates and banking and business practices. All of these technologies are used to create a payment system that is safe enough to be used through the Internet.   (Elizabeth Murrow currently works for a payment processing solution company. Being in the business for quite a long time now, she has been continuously sharing her knowledge through various lectures and blogging, including <a href="http://allaboutecheck.wordpress.com/">http://allaboutecheck.wordpress.com</a> and http://www.echeckprocessing.biz. Born and raised in California, Elizabeth now lives in Australia with her husband and two kids. She likes to travel during her free time.)

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