Unlike payments that arrive in the mail, eChecks will automate your financial management and record keeping. That means more time to devote to building your business. Here’s what you need to know about accepting electronic checks.
Go paperless
They allow your customers to send direct payment from their bank account to yours. eChecks manages invoices and automates and track payments.
Keep better records
With eChecks, you’ll have a digital transaction log that feeds data to your accounting software, your customers can make direct payments to your bank account, monitor the status of your invoices, and track customer activity.
Avoid human errors
In an eCheck transaction, automated systems (including the ACH) facilitate the verification, transmission, and clearing of funds, as well as the settlement of accounts. eCheck transactions are protected by highly secure government systems.
How are EFTs, eChecks, and ACH payments different?
The terms “ACH payment” and “eCheck” are often used interchangeably. But they are actually two types of payment belonging to a bigger category, an electronic funds transfer (EFT). An EFT transaction is the digital counterpart to the traditional physical money transaction (e.g., paper check, cash, etc.). An ACH is a network that facilitates electronic payments. An eCheck is the payment instrument itself. Many eCheck payments use ACH to complete the transaction.
It’s all about fast, secure payments
Electronic checks can eliminate almost every accounting hurdle that comes with getting paid. If you use accounting software, you can monitor invoice status, access transaction records, watch payment arrive in real time, issue refunds, and record customer activity.
Some more eCheck advice
If you’re ready to get started with electronic payments, here are some tips:
- Choose a well-established processing company. Good pricing is important, but working with a reliable processor is essential.
- Notify your customers that your business will begin using electronic check conversion. Federal laws require you post notification about this change, give a copy to your customers, and provide them with a phone number to request more information.
- Look for a processor that makes it easy export customer data, align your current business processes with your new electronic processing system, as well as seamlessly integrate with your business management software.
This article was produced by the Quickbooks Resource Center and syndicated by MediaFeed.org.
