Check books have always been popular with businesses for the payment of goods and services. It is still a preferred way of payment because it allows people the freedom to walk around with only a check book instead of a lot of paper money.
Even with the introduction of internet banking, credit cards and debt cards the check is still being widely used. In the United States of America, it is estimated that 75 million people still prefer to use a check instead of a credit card. The check has in the past few years undergone changes to make it more attractive to consumers, thanks to electronic check conversion.
Whereas one would write a check addressed to the beneficiary and hand over the check so that it could be cashed at a bank, there has been an improvement. Increasingly checks can now be processed by electronic check conversion. This is a quicker way of processing a check. It is a process that converts information from the paper check into an electronic format. The captured information is then used to facilitate a fund transfer. In the United States of America the Electronic Payments Association (NACHA) estimates that almost $5.7 billion paper checks were converted through in store and mail in transactions in 2008.
The process of electronic check conversion is as follows:
If one needs to make a payment to the merchant using an electronic check, they have to make sure that the store is displaying a sign that advises the public that they are able to pay by electronic check. The sign is usually located near the register stating that the paper check can be converted to an electronic check.
Before writing out the check it is critical to check if your account has the money that can cover the withdrawal by check. Unlike a paper check which takes some time before it is cleared, the electronic check conversion is faster. Failure to have money in the account will result in one being charged.
Once one has written the check to the merchant, it must be submitted together with a valid identity card to the store cashier. The check must now be run through a machine which captures the vital bank details and the amount of amount to be released. After this is done the cashier must hand the client a receipt together with the check. The cashier must void the banked check so that it is not reused again.
The merchant will then electronically send the captured information to the buyer’s bank .The bank will then transfer the money to the merchant. This should happen more quickly than the traditional check.
After the electronic check conversion it is recommended to keep tracking your account on a regular basis. The electronic check conversion is usually recorded as a same way as other check withdrawals on the bank statement. The name of the business that received the money and the check number will appear for clarity. If any mistake is noticed on the statement this should immediately be forwarded to the bank. One has a maximum of 60 days to file a complaint.
There are a number of advantages associated with an electronic check. This method is fast,easy and eliminates a lot of procedures associated with a paper check. There are also less processing fees because electronic methods require less people, making it cheaper. Electronic checks are also governed by the same law that applies to paper checks. Therefore the use of this method of fund transfer has simplified the way money transfers are handled.