eCheck.Net® is an Authorize.Net payment service that allows merchants to accept electronic check payments for goods and services purchased via several methods, including mail order/telephone order and e-commerce websites. It also allows merchants to collect paper checks and convert them into electronic checks, a process discussed in more detail in the “Types of eCheck.Net Transactions” section of this document.
An electronic check works much like a regular check, only instead of using a paper check to provide their bank account, routing number and payment authorization, the customer provides the merchant with the necessary payment information through other methods, allowing the merchant to process the information electronically.
The eCheck.Net® service uses the Automated Clearing House (ACH) Network to process fund transfers from customer bank accounts to merchant bank accounts. The ACH Network is the group of financial institutions and similar entities within the banking industry that work together to facilitate the processing and clearing of electronic check payments. eCheck.Net transactions are strictly governed by ACH processing rules established by the National Automated Clearing House Association (NACHA), in addition to the Electronic Funds Transfer Act and Regulation E, as established by the Federal Reserve Board.