What Are Digital Checks?

What Are Digital Checks?
••• Comstock Images/Stockbyte/Getty Images

The Federal Reserve Bank of Chicago says a digital check is a type of electronic payment order. Smartphone users can purchase digital check software that allows them to create virtual checks that are the electronic equivalent of paper checks. Digital checks eliminate the cost of printing and processing paper checks. Plus, the time required to process a transaction is usually less than for physical checks.

Writing a Digital Check