Four Key Stages of Digital Check Payment Workflow

Four Key Stages of Digital Check Payment Workflow

Curious about how electronic check payments work? An electronic check, or eCheck, allows you to make payments online as a digital version of a traditional check. To complete a transaction, you need your bank routing number, account number, and account holder's name.

The digital check payment process streamlines the traditional check-cashing method, offering a quick, cost-effective, and hassle-free way to receive funds.

While similar to paper check processing, electronic checks leverage technology to eliminate manual procedures, making the process faster and more efficient.

Digital check payments involve four simple stages, detailed below:

Authorization Request
Customers give permission to process the payment, typically through an online form, signed document, or phone approval.

Payment Configuration
Once authorized, the business enters the payment details into their system. For recurring payments, the schedule and details are recorded at this stage.

Submission and Finalization
With all data correctly entered, the transaction is initiated by clicking 'submit' or 'save' in the online platform.

Confirmation and Funds Transfer
Funds are automatically debited from the customer's bank account, a receipt is sent to the customer, and the payment funds are deposited into the merchant’s bank account. The settlement typically takes three to five business days.

Once complete, the payment process concludes. Electronic check payments are quick, convenient, and reduce manual effort, making transactions easier for customers and businesses alike.