• Electronic Check Payment systems enable merchants to offer consumers the option of paying by check yet enables the check to be treated as a debit or credit payment option. The amount and necessary bank information from the check is captured and routed through the Automated Clearing House (ACH), which transfers the money to the merchant's account by end of day if not faster. Electronic Check Payment systems have advantages for both merchant and consumer, improving efficiency, accuracy and flexibility.
  
  

Improved Efficiency

• Electronic check payments reduce the amount of paper and the number of people needed to handle that paper. Reducing the amount of paper doesn't just make the solution green, but it also reduces the amount of work in making the paper checks and processing them to enable the transfer of funds between consumer bank and merchant. Computers replace some of the many hands used in the process, driving up the efficiency and expediency of the payment.
  
  

Improved Accuracy

• Fewer people are needed to handle and enter the check information, which reduces the amount of human error within the process, improving the accuracy of transactions. It also enables both merchant and consumer to improve the accuracy of purchase and bill payment records. The communication time between banks has improved significantly, which has reduced the number of Non Sufficient Funds (NSFs). Merchants are flagged almost immediately regarding lack of funds and without incurring additional fees and can then work with the consumer to provide an alternate method of payment. Consumers can also avoid NSF fees with immediate approval or rejection of an electronic check.
  
  

Improved Flexibility

• Electronic checks enable merchants to provide more payment options to their customers. It also enables customers to pay by check 24 hours a day 7 days a week with any merchant who is set up to receive electronic checks. Electronic check options also extend beyond the Internet, enabling a merchant to set up automated check payment options with their telephone lines. Telephone automated payment options enable the merchant to lower labor costs, yet provide the consumer with yet another payment option for their convenience. These additional options provide the merchant and consumer greater flexibility in purchasing and bill payment.
  
  

Consumer Anonymity

• Unlike credit card purchases, consumers can use electronic checks to maintain their anonymity if they prefer. Credit cards often collect information on spending habits and sell to third parties who use the information for targeted marketing campaigns. Using an electronic check offers more privacy and prevents merchants from using their information for any purpose.