Using an electronic check, customers can provide their bank account, routing number, and payment authorization through an eCheck authorization form rather than using a paper check to provide payment information. This allows you to process the information electronically rather than using a paper check. E-checks are a type of electronic funds transfer (EFT). You enter your banking information into a website or payment gateway instead of writing a check. One example of eCheck processing is online bill payment. Paper checks are slower and less secure than eChecks, which use the Automated Clearing House (ACH) network.

How Does eCheck Processing Work?
Check payments require a bank to verify a physical check and send it to the other bank associated with the transaction, which then verifies the physical check. Check truncation refers to the process by which banks verify fund transfers with digital checks. Through check truncation, both banks can verify a digital check, eliminating the need to transport physical checks. While eCheck processing is faster than traditional check processing, the information required for payment processing remains the same. When initiating an electronic check, your customer must provide their bank's routing and account numbers, as well as their authorization, just as they would with a paper check.