The ABC of Echeck Processing

by Kay Fione     Hannah Belford was on her way home from the office when she saw a cute pretty dress in a mall glass display window. She knew the dress would fit her perfectly. And it carried an affordable price tag. So she hurriedly went inside to buy it. To her dismay, she discovered she left her credit card back home. She had only her paper checkbook. Without her credit card, she could not make the purchase. On the other hand, the dress store owner Elaine Sy watched from the counter as Hannah fumbled for her purse and let out a sigh of disappointment. The shop owner already had an idea about the meaning of those too obvious gestures of frustration. Leaving the counter, Miss Sy walked towards Hannah. “ Can I help you, lady?” she asked. “I want to buy that dress but I don't have my credit card with me, “ Hannah answered with exasperation in her voice. “ All I have is my checkbook.” “ I'll accept that, “ the shop owner assured her. “ Oh?” the surprised Hannah remarked with incredulity. “But my bank is on another state and..” “ I can accept checks from anywhere, “ Miss Sy interrupted with a smile and pointed to a sign above the doorway that reads “ ACCEPT CHECKS.” You see, I have electronic check processing service. With it, your paper check is converted into an electronic check and then submitted electronically. I don't have to go to the bank to cash it. In other words, you can have that dress you wanted so much, after all.” Hannah was exuberant. She completed the transaction using her paper check instead of her credit card. Echeck processing may sound new to some. But in reality, its inception started way back sometime in 1997. Basically, the paper check payment you receive is converted into an electronic transfer which debits money from the check owner and then deposits the amount in your account. It's as good as cash.   Here's the ABC of echeck processing: <ol><li>The merchant applies for and gets an echeck processing service from an Echeck processing company. </li><li>The echeck processing company then furnishes the merchants with the necessary hardware or software requirements. </li><li>The merchant posts a sign in his/ her business establishment, notifying customers that the particular business establishment accepts paper checks. </li><li>Customers make purchase in the store and pay with paper check. </li><li>Merchants takes the paper checks, converts them to electronic checks with the use of the necessary hardware. Another way is for the merchant to key in the pertinent check information in the computer. Then the information is sent to the echeck processing company via the Internet. </li><li>The echeck company processes the checks. When the check has sufficient funds, the amount reflected in the check is debited from the account of the one who issues it and then deposited in the merchant's bank account. </li><li>The check owner will find the echeck transaction in his/her bank account statement. </li><li>With the money deposited in the merchant's account, the merchant can now withdraw the amount and use it in whatever way he wants. </li></ol>   As one can see, the echeck process is relatively simple, fast, secure and convenient. ( 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/the_abc_of_echeck_processing.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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