Posted by NationalACH on Apr 16, 2010

ACH Payments with Echecks

The newest applications in the ACH payments network are referred to as electronic checks, or echecks. 

An echeck is a debit payment instrument that is widely accepted and used by businesses, governments, and consumers as payment for virtually any form of commerce.  Echecks are among the most secure payments instrument or transaction ever designed or developed and are designed to utilize state of the art security techniques of:

  • authentication
  • public key cryptography
  • digital signatures
  • certificate authorities
  • duplicate detection
  • encryption

Echecks combine the the best of both paper and electronic laws and regulations for you.

  • Echecks are based on check law and have the same characteristics of paper checks but in all-electronic form.
  • Echecks provide consumers the protections and rights from Regulation E, which limits liability and establishes dispute resolution timeframes.
  • Coupling eCheck security with a sound legal structure reduces the exposure and risk of loss to merchants.  Uniform 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

Types of E Checks

Electronic checks are used for the following applications

  • WEB (Internet based)
  • ARC (mailed payment check conversion)
  • POP (check conversion-POS)
  • RCK (NSF check recovery)
  • TEL (telephone)
  • PPD (consumer pre auth recurring one-time debit)

These applications are called eChecks because the merchant or biller uses a check as a source document for the consumer’s account information (RCK, POP, ARC) or the consumer is prompted to use their check as a reference to provide their account information (WEB, TEL).


Echecks are used by merchants and billers as an alternative payment method that is faster, more convenient and more secure than traditional check processing. Electronic checks give consumers another way to pay you.

Alternative payments such as electronic checks, are the fastest growing way to pay online. If you don't accept echecks, you risk losing sales to your competitors that do.

Are you interested in an echeck account to increase your profits?

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