What Is eCheck

eChecks work the same way as paper checks in that they transfer money from one entity to another. Essentially an eCheck or an electronic check is a type of online payment where money is electronically withdrawn from the payer’s checking account transferred over the ACH network and deposited into the payee’s checking account. The payment is automatically withdrawn from the customer’s bank account, the online software sends a payment receipt to the customer, and the payment itself is deposited into the business’s bank account. Funds are typically deposited into the merchant’s bank account three to five business days after the ACH transaction is initiated.