Posted by NationalACH on Jan 10, 2018
eCheck Payment Processing

Paper checks have been relegated to history. In a fast-paced digital world, consumers seek out and reward companies that offer convenience. Companies across the country are now trying to streamline the payment processes and improve the customer transaction experience by adopting echeck payment processing infrastructure.

Here’s why echeck payment processing is taking over the business world:

Physical checks are redundant

The switch to digital payment technology coincides with a decline in traditional payment methods. According to a payments study by the federal reserve, between 2012 and 2016 the number of check payments declined by 2.5 billion. In fact, the use of traditional paper checks has been in a steady decline since 2003. Electronic checks or echecks are replacing paper swiftly.

Cash is also declining

Consumers aren’t giving up on checks to pay in cash. According to the Federal Reserve Bank of San Francisco, cash is still the dominant method of payment for most Americans, with half of all transactions under $50 being completed in cash. However, with newer and better payment methods, cash use is declining. From 2012 to 2015, cash use went from 40% to less than 32% of all transactions. While cash represents 15.5% of US GDP on average, this rate is set to decline to 11.7% by 2020.  

Better technology is now available

Consumers are switching to digital means of payment such as credit cards, debit cards, and the automated clearing house (ACH) system. Echecks are part of the ACH system and this type of payment is quickly rising across the country.  Payments through this system have risen by 3 billion since 2012. In 2015, 23.5 billion ACH transactions were completed with an estimated value of over $145.3 trillion.

eChecks Are More Convenient For Everyone

Echeck payment processing is a technology that is convenient for both businesses and consumers. These electronic checks find better adoption rates with customers who have always relied on check payments for transactions. This means echecks have a wider user base for your business to tap into.

Wider Adoption

Payment systems have network effects. This means a payment network is more valuable and useful when there are more users on it. Since the use of ACH and echecks has been steadily growing in recent years, you can integrate echeck payment processing and expect a significant proportion of your regular customers to use it. This saves you from having to educate your clients and customers about new payment methods or digital technologies.  

Easy Integration

Most echeck payment processing solutions will easily integrate into your existing accounting and sales infrastructure. Your customers can transact via echecks and the transactions are easily logged in your accounting software. This eliminates your cost of adoption.   

Tangible evidence

One of the key benefits of echeck payment processing for you and your customers is the tangible evidence of transactions. Echecks are easy to trace and manage digitally, which reduces the risk of misunderstandings and payment discrepancies with your suppliers, customers, and vendors.

Data Protection

With echeck payment processing, your business can accept payments without the need to store and protect sensitive customer data. Payees do not need to provide their personal details or government-issued documents.


Echecks help secure the payment end to end. Your business can access guarantees on the checks through your payment processor while the customers are protected under  Regulation E (Reg. E). Security is one of the most crucial features of digital payments through ACH.

Ease of Use

Echecks are easy to use and are at lower risk of human error. The transactions are automated and cleared through a nationwide network, which means payments are easy and quick to complete. For your business, signing up with a reputed payment processor is all you need to integrate the system and provide this convenience to your customers.


Adopting new technologies and providing convenience is clearly a competitive advantage for your business. Consumers are increasingly moving to echecks and businesses are following them by integrating the system into their payments infrastructure.

Do you want to streamline transactions and make payments more convenient for your clients?

Contact us today to learn more about this trend and how your business can benefit from digital payments.