What is Electronic Check ?
Electronic check conversion is basically an new payment method where in your check is scanned for information such as check number, account number, IFSC code along with image of the check itself on some occasions.
How Does it Work?
When you have to deposit a check in a bank you have to take a piece of paper and we will have to go to the bank and thus goes the process. Electronic check reduces the time and the effort needed to go bank instead takes the details of the details of the check in form of electronic form known as Electronic check.
Where the Electronic Check Conversion is Takes Place?
The Electronic check conversion may take place in front of you or it may happen when you mail a check to somebody to pay a bill. Either way the check is converted into electronic check and is used.
Impact of Electronic Checks
Electronic checks allow business to process payments more quickly reducing the time and effort required for it.
As a result, the money will come out of your checking account sooner than you expect.
Before you write an electronic check make sure you have enough money in the bank account and keep a balanced checkbook and also keep some overdraft protection plan as safety.
Now you may come across a question i.e. what is overdraft protection now? Well it’s a situation where you have no money in account but want to clear the payment. The banks do clear the payment but charge some amount as there fees.
Since you are paying electronically anyway, there are lesser reasons to go for the old fashioned payment method of writing checks.
Electronic Check Disclosure, Identification and Problems
Businesses are supposed to notify you that they’re making an electronic check. If you are in a store then there should be a sign which turns the paper to electronic check.
If you’re mailing in a check the company will send disclosure as a part of the agreement to approve it as an Electronic check.
If there happens any mistake then contact the bank immediately within 60 days of when the error appeared on your statement .