Even though you might be used to using a credit card wherever you go, your parents probably remember the times when they had to pay cash for everything. Nowadays, you aren’t by any means limited to using just credit cards, checks, or cash. You could pay with your phone, though let’s not forget about another option – eChecks.
Many people still use traditional checks, but we live in the 21st century, and you could switch to the online alternative. Still, some people would rather stick to the old method, as they are suspicious whether eCheck payments are secure enough. In a moment, we’ll try to dispel any of your doubts that might have about eChecks.
What Are eChecks?
Even though you might not be sure what an eCheck is, you have probably encountered this form of online payment. If you’ve agreed to use some type of a platform or services for a regular fee, the funds were most likely transferred using the eCheck. It means that money is withdrawn from your account, and once it is transferred through the ACH network, it ends up in the account of the company that’s providing the services.
Companies don’t have to ask users whether they can withdraw the funds before each operation, simplifying the process. However, the user has to express permission, either verbally during a phone call, or by signing the documents. Unfortunately, internet users don’t always read the terms to which they agree when they sign a contract, which sometimes leads to unpleasant consequences later on. That’s why we stress the importance of reading the terms of the contract before you sign it.
What Are the Common Myths About eChecks?
Although most of us are initially suspicious of new developments in the world of technology, it especially applies when it comes to our finances. That’s no surprise, as we would be risking our hard-earned savings.
However, eCheck is not in any way less secure than traditional methods of transferring money. The data in this process is tokenized, which means that even if a third party somehow intercepts it, which is very unlikely, they would only see a string of random characters. The possibility of a hacker attack has to be taken seriously, which is why the online payment systems use encryption to ensure that the user data is not compromised.
One reason why businesses are slow to adopt eChecks is that they are reluctant to pay the processing fees. It especially applies to smaller businesses, which need to ensure that the margin of profits stays at a specific level, or they might be unable to stay afloat.
However, the fees that the companies have to pay for allowing their customers to use eChecks aren’t particularly high, especially when compared to other online payment options. Certainly, it’s not the same as with cash, in which case you wouldn’t have to worry about the channel through which money would come at all but remember that most transactions are made online today.
It means that by enabling another online payment option, the possibility that your customers will end up choosing your services increases. You might think that there won’t be much difference if there’s a single online payment option or if there are more. Most clients will be perfectly happy with sending you money without leaving their homes, no matter what methods are available.
However, some of them might be able to pay for the products only with their credit card, while their bank account is frozen. Or, fearing that they’ll forget to transfer funds on time, they might be reluctant to sign a contract, unless the transfers of funds can be automated, as is the case with eCheck.
Additionally, let’s not forget that eChecks can save time as well. With traditional checks, you would have to go physically to the bank to deposit them, whereas, with eChecks, all the processes are done electronically.
We are used to the fast pace of technological progress, though when it comes to new developments in the banking system, some people are reluctant to adopt new trends. There’s nothing wrong with that – in the end, the naivety could lead to the loss of their savings.
However, when it comes to eChecks, there is no need to worry about their safety, as their security is at the same level as other online payment options. On top of that, they might be a preferred payment option for many customers, as after the initial agreement, the funds are withdrawn automatically.
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