What is eCheck?
eCheck is an electronic check payment for goods and services purchased via a Web site. An electronic check works like a regular check, only instead of providing payment by physically handing or mailing a paper check, the customer provides the routing and account information that is printed on their paper check so it may be processed electronically.
The eCheck service uses the Automated Clearing House (ACH) Network to process fund transfers from customer bank accounts to merchant bank accounts. The ACH Network is the group of financial institutions and similar entities within the banking industry that work together to facilitate the processing and clearing of electronic check payments. eCheck transactions are strictly governed by processing rules established by the National Automated Clearing House Association (NACHA), in addition to the Electronic Funds Transfer Act and Regulation E, as established by the Federal Reserve Board.