{"id":518162,"date":"2025-12-10T09:00:00","date_gmt":"2025-12-10T14:00:00","guid":{"rendered":"https:\/\/www.paymentsjournal.com\/?p=518162"},"modified":"2025-12-09T14:59:14","modified_gmt":"2025-12-09T19:59:14","slug":"beyond-paper-why-more-businesses-are-turning-to-echecks","status":"publish","type":"post","link":"https:\/\/www.paymentsjournal.com\/beyond-paper-why-more-businesses-are-turning-to-echecks\/","title":{"rendered":"Beyond Paper: Why More Businesses Are Turning to eChecks"},"content":{"rendered":"\n

Not long ago, payments meant paper, ink, and a trip to the mailbox. Today, consumers expect the opposite\u2014transactions that are contactless, mobile-friendly, and processed in real time. With countless digital payment methods now operating smoothly and instantly, it\u2019s no surprise that checks are being phased out in both commercial and consumer settings. Even the federal government\u2014once one of the largest issuers of paper checks\u2014plans to end their use for tax refunds and other payments.  <\/p>\n\n\n\n

Still, a reliable and easily tracked payment system continues to have an important role in the modern economy. Today, electronic checks offer a contemporary twist on this trusted, secure method of payment. And for businesses of all sizes, cutting-edge solutions like Authorize.net can make the transition from paper to electronics seamless by offering secure, fast, and cost-effective eCheck processing.<\/p>\n\n\n\n

What Is an eCheck?<\/h2>\n\n\n\n

An electronic check, or eCheck, functions much like a traditional paper check\u2014customers provide their bank account, routing number, and payment authorization to complete a transaction. The difference is that everything happens digitally, typically through an online form that enables secure electronic processing.<\/p>\n\n\n\n

\u201cChecks these days are primarily for handling one-off or rare higher value transactions,\u201d said Hugh Thomas, Lead Analyst of Commercial and Enterprise at Javelin Strategy & Research. \u201cEChecks allow you to push a payment to a supplier using the same processes you might with a paper check, but entirely electronically.\u201d<\/p>\n\n\n\n

EChecks are transmitted through the National Automated Clearing House (ACH) system for electronic funds transfers. Because the process is entirely electronic, businesses no longer have to wait for a paper check to arrive in the mail or be manually deposited. This not only speeds up payment collection, but also reduces the risk of human error. In addition, eChecks help avoid many of the costs associated with paper checks, including employee time and bank processing fees.<\/p>\n\n\n\n

\u201cEChecks initiate an ACH push payment,\u201d said Thomas \u201cBut because they come over as an email, you save time and paper, and the time in the mail, while still being able to append all the line-item detail that often rides along at the bottom of checks, like invoice numbers the check is meant to cover.\u201d<\/p>\n\n\n\n

A Wide Variety of Use Cases<\/h2>\n\n\n\n

EChecks offer several benefits that make them suitable for a variety of situations.<\/p>\n\n\n\n

First, they provide an alternative to credit or debit cards. Customers without access to credit can still make payments using an eCheck.<\/p>\n\n\n\n

They also allow businesses to receive direct, secure bank payments. Unlike paper checks, eChecks can\u2019t be lost or stolen, and they are well-protected against fraud. According to Nacha, fewer than 0.03% of ACH transactions are returned as unauthorized.<\/p>\n\n\n\n

For businesses, eCheck transactions are typically inexpensive\u2014much cheaper than processing paper checks, which often cost a dollar or two per check, and far less expensive than credit card payment fees.<\/p>\n\n\n\n

\u201cTypically in an ACH transaction there’s only a per unit cost, usually in the range of $0.10 to $0.25 for the merchant,\u201d said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. \u201cA credit card will cost them probably 2% to 2.5%. Even with a debit card, the merchant is paying a certain percentage of the sale.\u201d<\/p>\n\n\n\n

The low cost makes eChecks particularly well-suited for recurring payments. Fees for other payment methods can add up quickly for monthly transactions, whereas eChecks allow for a one-time approval to withdraw funds from a customer\u2019s account. This enables businesses to automate recurring payments, eliminating the need to manually collect them and providing a significant convenience factor. A comprehensive processing solution like Authorize.net supports automated recurring eCheck payments, reducing manual work and ensuring predictable cash flow for businesses.<\/p>\n\n\n\n

\u201cThere are a couple of sectors with recurring payments in which eChecks are extremely popular,\u201d said Apgar. \u201cOne is public sector merchants, who collect regular fees and fines. If the debit to your account doesn’t process, they don\u2019t need to pursue a chargeback\u2014they can just turn your service off.\u201d<\/p>\n\n\n\n

Another area where eChecks are becoming increasingly popular is in large business-to-business transactions, where secure, cost-effective, and trackable payments are critical.<\/p>\n\n\n\n

\u201cReceivables processing solutions these days are well equipped to handle eChecks, as they can read attached PDFs automatically and pull the information required to apply payment automatically,\u201d said Thomas. \u201cYou get the ability to push a single payment with the same security you get from a check run, but without the paper. An eCheck makes sense for bigger one-off payments to cover multiple invoices or other detailed remittance information.”<\/p>\n\n\n\n

An eCheck Case Study<\/h2>\n\n\n\n

One potential drawback of accepting eChecks is that the setup process can feel intimidating. It typically requires steps such as establishing an ACH line with a bank.<\/p>\n\n\n\n

Authorize.net is built to fit into an organization\u2019s existing payments workflows, with white-label options that keep the process seamless and unobtrusive. Its straightforward integration makes onboarding quick, and the system can be accessed from the office, home, or on-site.<\/p>\n\n\n\n

Companies that adopt eChecks often discover unexpected benefits. For instance, VIIRL Marketing, a provider of advertising and marketing services, has relied on eChecks and Authorize.net since its founding, finding them to be a reliable part of their operations.<\/p>\n\n\n\n

\u201cAutomated billing is huge for us,\u201d said Jed Winkler, VIIRL\u2019s president and COO. \u201cWe have hundreds of clients across the country where we bill them every single month. It\u2019s good for us to be able to offer multiple different platforms for our customers to be able to pay, and one big one that we use a lot is eCheck.<\/p>\n\n\n\n

\u201cECheck is great for our end users because they don\u2019t have to mail us a check, we don\u2019t have to process the check, and with eCheck we\u2019re able to just process it immediately when we run the transaction on a month-to-month subscription basis. With Authorize.net the payments just work.\u201d<\/p>\n\n\n\n

Marcus Piazzisi, Founder of VIIRL Marketing added: \u201cThere are several benefits of accepting eChecks from our customers. First, the fees\u2014it\u2019s a lower cost solution. Second, it\u2019s more secure. Finally, our customers really like using it. It\u2019s easy to do and it integrates with all our payment options. Whatever we save on fees, we can put back into customer results.\u201d<\/p>\n\n\n\n

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Why Authorize.net Works for Businesses<\/strong><\/p>\n\n\n\n