First, what is the eCheck?

An eCheck is the electronic version or representation of a paper check.

eChecks:

• contain the same information as paper checks contain
• are based on the same rich legal framework as paper checks
• can be linked with unlimited information and exchanged directly between parties
• can be used in any and all remote transactions where paper checks are used today
• enhance the functions and features provided by bank checking accounts
• expand on the usefulness of paper checks by providing value-added information

eChecks work the same way a check does.

• the check writer "writes" the eCheck using one of many types of electronic devices and "gives" the eCheck to the payee electronically.
• the payee "deposits" the Electronic Check, receives credit, and the payee's bank "clears" the eCheck to the paying bank.
• the paying bank validates the eCheck and then "charges" the check writer's account for the check.

eChecks have important new features. They offer:

• the ability to conduct bank transactions, yet are safe enough to use on the Internet
• unlimited, but controlled, information carrying capability
• reduces fraud losses for all parties
• automatic verification of content and validity
• traditional checking features such as stop payments and easy reconciliation
• enhanced capabilities such as effective dating