ACH eChecks Automate Funds Transfer
ACH eChecks Automate Funds Transfer
ACH eChecks Automate Funds TransferEchecks are ACH transactions which debit funds from a buyer's checking or savings account and electronically deposit the funds into the merchants' bank account. ACH echecks are accepted and used by businesses, governments, and consumers as preferred payment for any form of commerce.
ACH echecks are among the most secure payments instrument or transaction ever designed or developed and are designed. ACH echecks use security techniques of authentication; public key cryptography, digital signatures, certificate authorities, duplicate detection and encryption.
Echecks combine the best of paper checks and electronic funds transfer laws and regulations
ACH echecks maintain the characteristics of paper checks but in a more efficient electronic format.
ACH echecks give buyers Regulation E protections and rights, which limit liability and establishing dispute resolution timeframes.
Combining ACH echeck security with a sound legal structure reduces the exposure and risk of loss to merchants. Laws governing checks have been established in the United States for many years and include: Uniform Commercial Code (UCC); Regulation CC; Regulation J; Federal Reserve Bank Operating Circulars
ACH eChecks Good for Business and Consumers
Echecks are electronic transfers of an authorized payment from a consumer's checking or savings account into the account of a biller, internet retailer, mail/phone order firm, financing or investment company, government agency or non-profit organization. Echecks are a safe, secure, accurate and on-time payment option.
ACH echecks are beneficial to both consumers and companies. For companies, ACH echeck transactions stabilize revenues; increase consumer loyalty, and save time and money by enhancing productivity. For consumers, ACH echecks simplify bill paying, makes purchasing online or over the phone easier, and eliminate the hassles of using a paper check.
Top 6 Facts About ACH eChecks
Echecks are an easy way to automate recurring payments, including loan and insurance payments, subscriptions membership dues, utility bills, and charitable contributions.
Echecks are reliable, accurate, on time and confidential. Research shows that ACH echecks reduce late payment fees for bills which save consumers money.
For billers and retailers, ACH echecks improves cash flow, reduces days outstanding, and, and improves profit margins..
Problems with ACH echecks are rare. Consumers using echecks as a payment option are protected under the Federal Reserve Board's Regulation E. This requires a consumer's financial institution to investigate echecks transactions that the consumer believes to be in error, provided that the consumer has notified the bank in a timely fashion.
More than half of all U.S. households use echecks for at least one recurring payment and 90% of consumers who use it say they are very satisfied. Online bill pay are quickly overtaking paper checks for bill payments.
ACH echecks save companies an average of 11.5 cents per payment (versus checks) in reduced processing costs.
How Do ACH eChecks Work?
The customer authorizes a company to debit payments from a checking or savings account, and provides account number information. Consumer authorization may be done online, over the phone, or by written authorization. Confirmation of the payment is sent to the customer.
The company submits the echecks file to the bank or echecks processor. The file is cleared either through the ACH payments network or via Check 21 bank-to-bank image transfers. .
The funds from the echecks are settled into the company's business account. Settlement time ranges from same or next day for some echecks cleared through Check 21 technology up to four days for checks cleared via the ACH payments network.
The customer's financial institution reports echecks transactions monthly on customer account statements. For Check 21 echecks, the transaction is listed as a line item in the same way as paper checks are listed. For ACH echecks, the transaction is listed in a separate direct debit area on the bank statement.
For information on how to establish an echecks or ACH merchant account contact info@nationalach.com
ACH eChecks Automate Funds Transfer
By: best solutions