Echeck Processing In A Nutshell

by Kay Fione The business world now enjoys technological breakthrough in the form of electronic check processing or echeck. Simply put, echeck is an electronic version of a paper check. It utilizes a computer, an Internet connection, and a small imaging equipment. No longer will you need to go to the bank to deposit or encash a check payment. You can now process paper checks anytime, anywhere as long as you have an Internet-connected computer. But what exactly is echeck processing? Basically, it is a process whereby you scan a paper check you receive using an imaging device and then convert the scanned image into an electronic format. (You can buy this handy scanning device for a fee from your bank). The file is now called electronic check or simply echeck. You can now send this echeck in your bank via Internet. The bank, in turn, will complete the necessary steps to take the funds from the checkowner and transfer it into your account. The whole echeck processing service would take less time than its paper counterpart. And the good thing is, you don't have to go to the bank. To summarize, the process is as follows: <ol><li>You notify your bank—either in writing correspondence or through a personal visit to their office -- that you want to process checks electronically into your account. </li><li>Your bank will require you to buy a scanning device from them. </li><li>Next, the bank personnel will setup your account in such a way that it will accept echeck entries. </li><li>Back at your establishment, you accept paper check payment from your customers. </li><li>You run the paper check into the scanning device. This will take an image of the paper check and convert it into an electronic check or echeck. </li><li>With the scanning device attached to your computer, you can now send the echeck via the Internet to your bank. In turn, the bank will process the echeck and deposit the check amount into your account.   </li></ol> There's another alternative, though, than this bank-assisted echeck processing. And it's an excellent way to process checks. You don't need to buy equipment or install any software. All you have to do is subscribe to an echeck processing service from an echeck processing company of your choice. It's web-based, secure and very convenient process. Here's the steps: <ol><li>Browse through the Internet from a wide array of echeck processing companies. </li><li>Comparison-shop for the best deals and service and settle for the company of your choice. </li><li>Contact them by phone or through email. </li><li>For a subscription fee, they will set up an account for you complete with the passwords and logging details. </li><li>When you receive a paper check, you simply open up the processing company's browser, manually key in the check's pertinent information like – check number, amount, name of issuing bank, checkholder's name, etc..-- in the online form, and then click “ Send”. </li><li>Upon receipt, the echeck processing company will then process your check and , if everything turns out right, they will then deposit the money into your account. </li></ol> ( Kay Fione is an electronic banking authority with years of solid experience. She finished her Banking and Finance course as an honor student at the University of Minnesota. She currently works as an executive in an Australian bank. She loves snorkeling and writes business articles on her free time. Amber lives with her husband and four kids.) <a href="http://www.onlywire.com/submit?u=http://www.echeckprocessing.biz/echeck_processing_in_a_nutshell.html;t=check%20processing;tags=Check%20processing" target="_blank" title="Add this Article to Onlywire"><img src="http://www.onlywire.com/i/onlywire.ico" alt="" />Add to Onlywire!</a>

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