How to accept eCheck payments

Digital banking keeps moving forward, and with it, businesses are looking for cheaper, simpler ways to get paid. Electronic cheques (eChecks) sit in a useful middle ground. They behave like traditional cheques, but the process happens online. This gives customers something familiar, and gives merchants a low-cost, reliable way to collect money directly from bank accounts.

What is an eCheck?

An eCheck is a digital form of a paper cheque. Instead of someone writing a cheque and posting it, funds move electronically from one bank account to another. The transfer runs through the Automated Clearing House (ACH) network — the same system used for many bank-to-bank payments.

Businesses often choose eChecks because they’re:

• secure
• low-cost
• suited to recurring and high-value payments
• useful for B2B transactions and subscription billing

In regions where ACH-type rails are standard (such as North America and parts of Europe), eChecks are becoming a go-to alternative to cards and paper cheques.

How eCheck payments work

An eCheck transaction follows a straightforward sequence. The key components include the customer’s bank account number, routing number, and authorisation to process the payment. Once these are in place, the payment process begins.

Typical process:

1. Authorisation: The payer grants permission for the business to withdraw funds. This can be done through an online form, recorded phone call, or signed agreement.
2. Initiation: The business submits the payment request through its eCheck processor.
3. Verification: The system checks for sufficient funds and account validity.
4. Processing: The ACH network transfers the funds between banks.
5. Settlement: The business receives the funds, typically within three to five business days.

Most eCheck payments settle within that timeframe, though some banks or processors may clear them sooner. The process is largely automated, reducing manual tasks associated with paper cheque reconciliation.

eChecks vs other payment methods

eChecks combine the familiarity of cheques with the efficiency of electronic payments. They are more affordable than card transactions and more convenient than handling paper.

How to accept eCheck payments

Accepting eCheck payments involves a few practical steps:

1. Choose a provider
   Select a payment processor or gateway that supports eChecks. Compare providers based on transaction fees, ACH support, integration options, and data security standards. Reliability and transparency are essential.
2. Apply for an eCheck or ACH merchant account
   You’ll need to provide your business details, tax identification number, banking information, and expected payment volumes. Most approvals are completed within a few days.
3. Integrate the payment system
   Integrate the eCheck functionality into your website, mobile app, or POS system. Securely collect routing and account numbers and use encrypted forms to protect customer data.
4. Collect payments
   Offer flexible payment options such as online checkout, invoicing, or phone authorisation. eChecks can handle both one-time and recurring transactions, making them ideal for subscriptions or B2B billing.
5. Process and deposit
   Once a payment is initiated, track its progress through your dashboard. Funds are deposited automatically into your business bank account once cleared, typically within three to five days.

Benefits of accepting eChecks for businesses

Cost savings

Processing fees for eChecks are often between $0.10 and $0.50 per transaction, compared with 1.5%–3.5% for credit cards. Eliminating paper cheques can also save up to $7.78 per cheque when considering envelopes, postage, and manual handling.

Operational efficiency

By automating payments, businesses reduce reconciliation time and administrative overhead. eChecks are well-suited for recurring payments, helping stabilise cash flow and minimise human error.

Customer appeal

Many customers, especially in B2B sectors and among older demographics, still prefer paying by cheque. eChecks offer them a familiar yet digital experience that’s faster and more secure.

Lower dispute risk

The window for disputes is typically 60 days, much shorter than that for card chargebacks. This adds predictability to your financial operations.

Who are eCheck payments for?

eCheck payments are versatile and serve a range of business models:

• B2B transactions and vendor payments: Many suppliers and partners prefer direct account transfers over cards for high-value invoices.
• Recurring subscriptions and memberships: Ideal for gyms, schools, or SaaS providers managing regular billing cycles.
• Real estate, healthcare, and legal services: These sectors often handle large, recurring, or scheduled payments, making eChecks an efficient alternative to paper-based or card payments.

Given that 40% of B2B payments in the US are still made via cheques, introducing eChecks can bring immediate efficiency gains to organisations in these industries.

Choosing the right eCheck payment solution

When selecting a solution, focus on ease of setup, transparent pricing, compliance with ACH rules, and ongoing customer support. Consider whether the provider offers clear reporting, automated reconciliation, and fraud prevention tools.

Trusted solutions support eCheck acceptance through secure, globally connected systems. Merchants can integrate ACH-compatible payments and manage transactions easily from one platform while maintaining compliance with international standards.

Conclusion

eChecks offer a bridge between traditional payments and digital efficiency. They lower costs, reduce processing times, and simplify how funds move between businesses and customers. As online payments expand, understanding how to accept eCheck payments helps your business stay competitive while meeting the needs of clients who still prefer to pay directly from their bank accounts.