An eCheck is a digital payment sent from a bank account to a payee through ACH after online authorization. Some payments process immediately, but clearing typically takes up to one business day; insufficient funds can trigger bank fees and possibly a late fee from the payee.
eChecks can be used for loans, credit cards, utilities, subscriptions and membership fees, digital-wallet transfers, and taxes. Acceptance varies by company, and they are not usually accepted for retail purchases. Setup may require the recipient's name and payment amount, plus the payer's account and routing numbers; one-time and recurring payments are both possible.
The article describes eChecks as more secure than paper checks because there is no paper document to lose or steal, and says ACH payments are encrypted and authenticated. It also notes that incorrect payments may be difficult to reverse, transaction limits may apply, and eChecks are not processed on weekends or holidays. Credit cards are more likely to be accepted by retailers and may earn rewards; eChecks can avoid credit-card processing fees and do not create credit-card debt.
