The time taken to process an e-check varies slightly among payment service providers. Time is saved because the basic bank account details are already stored by the software. But in manual checks, these have to be filled in every check. The processing time is almost the same for both online and manual. It generally takes 24 to 48 hours to verify the funds in the customer's account. The e-check is then processed between 3 to 6 working days, and the funds are transferred from the customer's account to the merchant's account.
What kind of security is required to use eChecks?
E-checks are considered more secure than paper checks. Below are some of the key security components for eCheck transactions:
Customer authentication: In this process, the payment service provider verifies the person submitting the account information. Authentication ensures that ambiguous and fraudulent details are not submitted to the business entity.
Data encryption: This is the process of 'masking' confidential and sensitive data. Data encryption is required for all ACH transactions, including eChecks for transactions that occur over unsecured electronic networks.
Cryptography: Public-key cryptography is a part of the data encryption process and is used to keep data secure in transit.
Digital signature certificate: eChecks are signed via a digital signature certificate with a timestamp to ensure that eCheck transactions are not fraudulently replicated. These certificates are issued by registered authorities to protect information, enable secure communications, and encrypt transactions.
Fraud detection: This is a strategy in which duplicate eCheck transactions and suspicious activities are monitored to prevent fraud.
Note: Are you looking for companies and industry databases? Here we have mentioned some of the top companies' data lists given below. Check them out now.
Comments