You’ve probably heard about eCheck payments, but don’t really know much about them. What exactly is an eCheck? How does it differ from a credit card or debit card? And how long does it take to get processed?
eCheck is short for Electronic Check. This type of payment method is similar to a check, but instead of paper, it uses electronic data.
The advantage of using an eCheck is that it allows you to pay instantly without having to wait for a bank transfer.
An eCheck is a form of direct deposit. When you receive an eCheck, you’ll see a code on the back. This code is called an IBAN (International Bank Account Number).
Once you enter this number into your account, you’ll be able to withdraw funds immediately.
An eCheck can also be used as a bill payment option. If you have a recurring billing plan with your merchant, they may accept eCheck payments.
The length of time it takes to process an eCheck depends on which merchant you’re paying and what kind of transaction it is.
For example, if you use an eCheck to make a purchase at Amazon.com, then it will usually take anywhere from 3-5 business days for the money to clear.
In this article, we’ll be taking a look at how long it takes for eChecks to be processed. So if you’re wondering how long it takes for your eCheck to clear, read on!
How Long Does It Take For An eCheck to Clear?
Whilst eChecks take a significantly shorter amount of time to clear than traditional paper checks, they are not instantaneous.
It’s a popular misconception that eChecks clear as soon as they are cashed.
You can be forgiven for thinking that because the process happens electronically, it should be instantaneous. There is still an element of processing that happens with eChecks.
On average, it takes between 3 and 5 business days for an eCheck to clear once it has been submitted.
What Are Instant eChecks?
Whilst the traditional eCheck takes 3 to 5 business days to clear, there is something called an Instant eCheck.
An Instant eCheck isn’t the same as a conventional eCheck.
Typically, an Instant eCheck is used in the gambling industry. They allow players to make immediate EFTs (electronic fund transfers) between their bank account and their online player account.
When making an Instant eCheck, you can choose whether you want to send funds to your own account or to another person’s account.
If you select the latter, then you’ll need to provide the recipient’s name, address, and IBAN.
Once you have completed these details, you’ll be asked to confirm that the recipient has agreed to receive the funds.
If the recipient agrees, then the funds will be sent within seconds.
Instant eChecks are often used by casinos, poker rooms and sports betting sites.
Are eChecks Safer Than Credit Cards?
There are some people who believe that eChecks are safer than credit cards.
This is simply not true.
For starters, eChecks aren’t encrypted like credit card transactions. In addition, they don’t require any sort of authentication.
They are also not reversible, so if someone steals your card information, they won’t be able to reverse the charges.
As far as safety goes, it really comes down to personal preference. Some people prefer to use eChecks to pay bills and other things, whilst others would rather use credit cards.
Which Is Better: eChecks Or Cash?
eChecks are ideal for those who prefer to avoid using plastic when possible.
However, if you do decide to use them, then it’s important to remember that they are not instant.
So if you’re going to use them, make sure you plan ahead.
The best way to ensure that you get paid is to set up recurring payments. This means that you will automatically be charged every month for services such as electricity, gas, and water.
You can also set up automatic payments for your phone bill, internet service provider and more.
In this way, you can rest easy knowing that you will always get paid on time.
How Long Do PayPal eChecks Take To Clear?
PayPal eChecks take approximately 1-3 business days to clear.
This can seem like a long time, but bear in mind that just like any other transaction, eChecks need to go through the banking system.
A lot depends on which country you live in, as some country’s banking systems are slower than others.
Some countries may only take 2 business days to clear, whereas others could take longer.
Can I Use A Different Bank Account For My PayPal eChecks?
Yes, you can use a different bank account for your PayPal eChecks.
Just log into your PayPal account and click ‘My Profile’.
From here, you can view all of your accounts and edit your settings.
Click on the ‘Account Settings’ tab at the top of the page.
Click on ‘Manage Accounts’ under the ‘Banking & Payment Methods’ section.
Select the ‘Bank Account’ option from the dropdown menu.
Next, enter the new bank account number and routing number.
Then, click Save Changes.
Is eCheck The Same As Direct Deposit?
As we’ve mentioned, an eCheck is a digital version of a paper check. They use the ACH (Automated Clearing House) to direct debit from a customer’s checking account to the target bank account.
An eCheck is similar to a direct deposit because both allow money to be transferred directly from one bank account to another without having to wait for checks or cash to arrive.
However, there are differences between these two methods.
First off, with a direct deposit, the money is deposited into the recipient’s bank account immediately.
With an eCheck, the funds are held by the sender until the recipient has approved the payment.
If the recipient does not approve the payment within 7 calendar days, the funds will be returned to the sender.
We hope that our guide to eChecks has been helpful.
It should help you understand how they work and what their benefits and limitations are.
We’ll leave you with a few final tips.
Firstly, don’t forget to keep track of your eChecks! If you have multiple recipients, it is good practice to create separate eChecks for each person. This makes things easier to manage and prevents mistakes.
Secondly, if you’re looking for a better way to send money, then why not try out PayPal? They offer great features and benefits, including a free trial period so that you can see how it works.
Finally, remember that eChecks are still a relatively new concept.
Thank you for reading! If you want to read further on this subject visit our credit processing resource page.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.