Electronic Check Payment Benefits

Electronic check payments are a faster way to pay and get paid by using the Internet. In order to complete an electronic check payment, you need your bank's routing number and your bank account number.

Paper checks are quickly becoming a thing of the past.

Types

Electronic checks are used by consumers who purchase merchandise online. They are also becoming increasingly popular with companies, and some require employees to sign up to be paid with direct deposit.

Benefits

Merchants accepting electronic checks benefit because they know the money is in the payer's account, unlike a paper check that could bounce.

Time Frame

When a merchant accepts an electronic check, the money is deposited within two to three days. Electronic paychecks are automatically deposited, which benefits employees because it is deposited on the date of pay rather than days later when the check is cashed.

Costs

Companies that pay employees with electronic checks benefit because it costs about $0.55 per check as opposed to $1.22 for paper checks, according to PaySimple.

Speed

Since the check is electronically deposited, the payee does not have to manually deposit the check, which saves time in going to the bank and postage costs of mailing the check.

References

• PaySimple Electronic Paycheck Benefits
• Electronic Check Conversion