What is an E-check?
An E-check is an electronic version of a paper check that provides faster processing times. With an E-check, money is electronically transferred from the payers’ checking account and directly deposited into the sellers account, after being cleared by the ACH (Automated Clearing House); a network used for electronically moving money between bank accounts within the U.S.
By using the information found on your paper checks, you are essentially converting your paper check into an electronic transfer.
Electronic checks combine the security, speed, and processing efficiency of all electronic transactions, along with the infrastructure and processes associated with paper checks.
Other terms used for E-checks are: electronic check, direct debit, ACH payment, or ACH transfer.