{"id":1044,"date":"2015-03-12T17:32:49","date_gmt":"2015-03-12T21:32:49","guid":{"rendered":"http:\/\/www.qgiv.com\/blog\/?p=1044"},"modified":"2021-05-24T11:42:19","modified_gmt":"2021-05-24T15:42:19","slug":"how-echecks-work","status":"publish","type":"post","link":"https:\/\/www.qgiv.com\/blog\/how-echecks-work\/","title":{"rendered":"Payment Basics: How eChecks Work"},"content":{"rendered":"

You use them all the time to pay your bills and shop online, and your supporters often use them to make donations online. But what\u00a0is<\/em> an eCheck, exactly, and how do they work?<\/p>\n

The term “eCheck” is short for “electronic check.” Basically, eChecks use a donor’s routing and bank account numbers to process payments electronically, much like the way they work in their more traditional paper form. Like paper checks, there are a few steps that occur between the moment your donor clicks “Submit” and when you receive their donation. Here’s what happens. Ready?<\/p>\n

How eChecks Work<\/h4>\n

1. First, the payment information goes to an Automated Clearing House (ACH)<\/h4>\n

The information for the eCheck (also called an ACH payment or ACH transfer) is transferred electronically to an Automated Clearing House. The ACH receives the information in a “batch” that contains the information for other eChecks that are being processed at the same time.<\/p>\n

2. The ACH checks the donor’s bank<\/h4>\n

After it receives the eCheck information, the ACH forwards that info to the donor’s bank. The bank will use the information to ensure that the funds are available.<\/p>\n

3. The bank verifies the payment with the ACH<\/h4>\n

Assuming there are no issues with the eCheck, the bank will confirm the payment with the clearing house. This takes a little bit longer than a credit card payment — turnaround times average 48-72 hours.<\/p>\n

4. The ACH distributes the eCheck file<\/h4>\n

When the bank verifies the information, the ACH can distribute the eCheck file to your bank.\u00a0The bank then credits your account.<\/p>\n

That’s it! It’s a pretty simple process, which is one reason that it’s been so popular for online shoppers and donors alike.<\/p>\n

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