How Do I Accept an eCheck Online?

By Robert Courtneidge 13 Min Read

It seems you have recently received feedback about providing an alternative payment method like eCheck. Well, it helps the business to accept an eCheck online. And if you need to integrate eChecks into your available payment methods, then it’s worth it. Not every potential buyer is okay with giving out their card information online, so they tend to consider eChecks the safer option, even though it requires their routing number.

In this post, you will get to know how you can accept eCheck payments safely. Generally, it is a matter of picking a gateway, integrating it, and then letting your customers know that you now accept eChecks.

How eChecks Work

eChecks, while digital, still bear similarities to traditional paper checks, meaning they involve a certain degree of processing. However, thanks to the electronic network, eChecks are processed more rapidly without the need to physically deposit them at a bank.

The processes of an eCheck include:

1. Secure Customer Authorization

eChecks necessitate the consent of the customer or the involved party before processing. This approval can be obtained through a phone call or an online payment form.

2. Initiate Payment

With the customer’s approval, the business then enters the payment details into their virtual terminal or directly through their software provider. It’s important to specify the nature of the payment, whether it’s a one-off or a recurring transaction.

3. Activate ACH Transaction

Upon completing the above, the payment can be saved or submitted, thus starting the journey through the ACH network to procure the funds.

4. Acknowledge the Receipt of Funds

ACH transactions can be verified through the receipt of funds. It generally takes 3 to 5 business days for the funds to appear in your business bank account. Remember to express gratitude to the client for their payment.

How Do I Accept an eCheck Online?

Each payment processor has a unique step-by-step process for accepting eChecks. But this guide provides a general guide to help you stay on the right track during your implementation. Follow these steps to set up and accept an eCheck online:

1. Select the Right Payment Processing Platform

First, identify a payment gateway or processing platform that supports eChecks. Some options may include PayPal, Square, QuickBooks, and Stripe.

The best fit for your needs will depend on your specific business requirements. You will need to consider the provider’s fees, transaction processing times, integration capabilities with your existing systems, their level of customer service, and the security measures they have in place to protect transactions.

2. Create a Merchant Account

After deciding on the payment gateway, you will need to establish a merchant account.

This requires sharing details about your business, like EIN/Tax ID, the bank account where you wish to receive payments, and your contact information.

Make sure the account is set up under your business name to accept an eCheck online and maintain professionalism.

3. Configure Your Website

Your payment processor will typically offer plugins or APIs that allow you to integrate their services into your website.

This can be a complex task, depending on your website’s structure, so you may need assistance from a web developer. You should ensure the checkout process is user-friendly and secure, offering various payment options including eCheck.

4. Educate Your Customers

Your customers need to be aware that you accept an eCheck online. You could provide a guide on your website explaining how to pay with eCheck, the security advantages it offers, and why it could be a better option for them compared to credit or debit card payments.

5. Processing the eCheck Payment

When a customer decides to pay by eCheck, they’ll enter their bank routing number and account number, along with their name and the amount to be paid. Some systems also require the check number. Once they confirm the transaction, the processing platform will begin the process of transferring funds from the customer’s account to your business account.

6. Monitor and Verify Transactions

The payment gateway you chose will usually have a dashboard where you can monitor and manage transactions. Keep track of your payments, and make sure to follow up on any failed or disputed transactions.

7. Maintain Security

Ensuring the security of your customers’ information is paramount. Make sure you comply with all regulatory standards for handling and storing financial information, such as PCI DSS (Payment Card Industry Data Security Standard), and follow best practices to accept an eCheck online, prevent fraud, and data breaches. Your payment processor should also provide tools to help with this.

How Long eChecks Take to Process

Generally, eChecks require between 24 and 48 hours for verification and around 3 to 6 business days for the funds to be transferred and reflected in the relevant accounts. The delayed processing of eChecks is due to their dependence on the Automated Clearing House (ACH), a third-party system that executes Electronic Fund Transfers (EFT). As ACH operates by processing these transfers in groups instead of individually, the funds’ movement can take a few days. Therefore, you should not expect to accept an eCheck online instantly.

Should Your Business Accept eChecks Online?

If you’re contemplating whether to include eChecks as a viable payment method in your business operations, here’s a brief on its advantages to aid in your decision-making process.

The application of eChecks can be highly advantageous for recurring transactions and direct deposit and offer several other significant benefits for your enterprise. Here, we delve into three key reasons why eChecks can be an attractive choice for businesses.

1. Simplicity and efficiency

eChecks can be an excellent solution if your business deals with a substantial number of paper checks or repeated transactions with clients. They represent a secure and user-friendly method for B2B transactions, offering your customers additional flexibility in payment options. This helps minimize human errors in the payment process.

Moreover, eChecks produce a digital transaction history that integrates seamlessly with your accounting systems, making account reconciliation more straightforward.

2. Trustworthiness

With transactions processed through the ACH network, eChecks are widely regarded as a dependable means of transferring funds. This system is governed by stringent regulations set by the Federal Reserve and the National Automated Clearing House Association for all participating banks and providers.

Compared to traditional paper checks, eChecks traverse fewer hands, accelerating transaction times and reducing fraud potential.

For businesses handling recurring customer payments, eChecks present a more stable option compared to credit cards. Bank account information rarely changes, ensuring fewer disruptions in the payment process compared to credit cards that require regular updating.

3. Cost savings

eChecks stand out for their cost-effectiveness, providing a significant advantage to merchants and small enterprises. They typically carry lower processing fees than other payment forms like credit cards, which usually charge between 1.5% to 3.5% per transaction. Hence, eChecks can potentially slash payment processing expenses by as much as 60%.

4. Security considerations

eChecks are widely recognized as a secure payment option for both merchants and customers. For the customer, eChecks utilize data encryption to safeguard critical information such as bank routing details and account numbers. They also offer a safer alternative to traditional checks by involving fewer intermediaries.

For the merchant, the security benefits are equally significant. To avoid the threat of fraudulent checks, thorough research of payment processors is essential, and partnering with reputable providers is strongly advised.

Online eCheck Cons

Like any other payment method, eChecks come with a set of cons. Having explored the advantages, let’s delve into some potential disadvantages.

1. Extended Processing Time

As highlighted earlier, eChecks usually take between 3 to 6 business days to process completely. Comparatively, other payment methods like debit and credit card payments are posted more swiftly, typically within 1 to 3 days. For some businesses, the flexibility of payment timelines may not be an issue, while others might require more efficient collection methods.

2. Customer Unfamiliarity

While many customers are accustomed to debit and credit card transactions facilitated by ACH, eChecks are less known. Depending on your clientele, transitioning to eChecks might pose a challenge. However, diversifying payment options expands your business scope, which is invariably advantageous.

eChecks Vs. EFT and Wire Transfer

A notable benefit of eChecks is that it processes directly from a checking account. Thus, no need for credit or debit cards. eChecks typically carry lower fees than their counterparts, EFTs (Electronic Funds Transfers), and wire transfers, offering a cost-effective alternative for individuals or small businesses regularly employing check payments.

Despite lower fees, eChecks offer the same level of security as EFTs and wire transfers. They also have faster processing than conventional paper checks, ensuring quicker access to your funds.

However, while eChecks can only process payments within the US, EFTs and wire transfers can transfer funds internationally.

Many businesses are shifting to eChecks over traditional paper checks. thanks to their efficiency, speed, and compatibility with recurring payments.

A rising trend is the adoption of this handy payment method by businesses and consumers alike, with many opting for eCheck processing providers. eCheck transactions via the ACH network have nearly doubled since 2012, signaling a trend unlikely to wane soon.

Several factors contribute to the growing popularity as well, compared to credit card payments. Foremost, they provide a secure method for online or telephonic payments for goods and services. They are user-friendly and process quickly. Lastly, eChecks are accessible to anyone.


It is a good idea to accept an eCheck online, especially with more people becoming familiar with this form of payment. Not everyone wants to pay with their credit or debit cards, so you can always provide your customers with an alternative like eCheck to encourage them to buy from you. Most importantly, make sure to only integrate an eCheck payment gateway you can trust and that is secure. Your customers look up to you for the safety of their personal information and won’t think a second about the gateway if anything happens. But of course, nothing will.


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Independant Industry Expert in Payments and the Digital Future of Money, Co-Editor of The PAYTECH Book, top Payments Lawyer and voted No. 1 in Payments Power 10 at #PayExpo What do I do? I solve the problem of moving payments firms into the new era of money. Traditional financial services businesses risk getting left behind as Generation Z leapfrogs the banks, opting instead for big techs, challengers, and social commerce propositions. Ignoring blockchain technology and the widening knowledge gap between the financial services and digital sectors puts businesses at risk of falling behind their competitors, compromising their competitive edge, and ultimately becoming redundant.
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