An eCheck is the electronic payment version of a paper check that is used to send payment from one bank account to another. eChecks are actually synonymous with ACH payments and EFT transfers, which is engine that drives the bank bill pay that many users are familiar with.
eChecks, or ACH payments, are a low cost and secure method to process payments online. Compared to processing credit cards payments, which charges the vendor a percentage fee, receiving an eCheck typically costs a flat fee. For example, using Bill.com to accept eChecks would cost your business $0.49, regardless of the size of the invoice. A credit card processor could charge around $500 for a $10,000 invoice in credit card fees.
In addition, because eChecks are bank to bank transfers, the payment is directly deposited into your bank account. There is no need to waste time bringing paper checks to the bank to deposit.
Not only does eCheck save your business time and money in your AR process when compared to credit cards or paper checks, it can also save you time and money in your accounts payable process as well. Learn more about how a payments platform like Bill.com can eliminate significant costs in your AP process through eChecks and approval workflow efficiencies.