Home
>
Personal Finance
>
How Electronic Checks Work ? Will Paper Checks Eventually Go Away?

How Electronic Checks Work ? Will Paper Checks Eventually Go Away?

Traditional checks probably won't disappear anytime soon, but processing checks electronically is sure to continue! Have you ever been asked to fill out your account and routing number when paying for something online or over the phone ? or have you provided a paper check to pay for something and it is given back to you after it is run through a machine? Did you scratch your head like I did the first time that happened?

Here is how electronic check conversion works. Instead of writing out a check the old-fashioned way, the new way of using checks use digital signatures for signing and endorsing and have digital certificates to authenticate the bank account. These e-checks are sent either by direct transmission using telephone lines or by public networks such as the Internet. The "endorsed" e-check with an electronic signature is then sent over the internet to the payee's bank for deposit.

Why are companies using electronic checks, you ask? Well, more stores are using e-checks because they work in the same way as traditional checks, and require very little "public" education on the process. Secondly, they are more cost effective, especially for corporate markets. And finally, they can be cleared easier than traditional checks.

What Does it Mean to Me that Companies are Switching Over to E-Checks?

A downside is that there is little or no "float" on your check. Basically, if you were to write a check today, you need funds in your account at the time you write your check to cover the payment. If funds are not available, the check may bounce and a fee may be assessed by the business.

It has been easy to get into the habit of writing out a check right before pay day, knowing that the check would not clear immediately. With the emergence of electronic check conversion, that reasoning no longer is true and it can easily mean trouble.

Who Uses Electronic Checks and How do I Know?

Everyone from gas stations to restaurants and internet websites may use electronic checks, and to know for sure, you must look for a notice. By law, you must receive notice that your check has been processed electronically. Notice can be given in the following ways:

In a store, there might be a sign posted that says electronic checks are used.
For mailed checks, businesses might include notice on a monthly statement or under the terms and conditions section of your agreement.
In addition to the notice, information should also be provided from the company on how insufficient funds are collected and what the associated fee is for recovering those funds.

Do I Get My Check Back and Will the Payment be Shown on My Monthly Statement?

Your bank may be unable to give you a copy of your checks, so it is important to keep records of the checks written out ? duplicate checks are a great solution to this dilemma. If you run into a bind and need a copy of a check written to a merchant, check with that business, they may be able to provide it to you.

You payment must be shown on your monthly bank statement. It should include the name of the business, the payment amount and the date the payment was electronically transferred from your account.

What if There is an Error on Your Account or Unauthorized Transactions?

Be in the habit of reviewing your account regularly for errors. Did two payments go through instead of one? Were you charged the wrong amount? By law, you have 60 days from the date your statement was sent to you to notify your financial institution of any errors. Your copy of a check may take up to 45 days from when you notify them to investigate the issue. Normally, your bank will credit your account while the investigation occurs.

Robb Ksiazek is a successful author and publisher for copy of a check. He has researched and written hundreds of articles and can simplify your online search by recommending merchants for the best value and selections in business or personal checks, address labels, rubber stamps and envelopes.

Brookfield limo Midway .. Lockport Chicago limo O’Hare

In The News:

A startup claims to have developed the world's first entirely artificial intelligence-designed and 3D-printed shoe, the brainchild of a 25-year-old.

Creating an email alias can help clean up your inbox by organizing emails based on purpose, like creating different aliases for shopping, newsletters and work.

A multipurpose robotic system promises to transform how items are stacked onto pallets, aiming to maximize space utilization and reduce shipping costs.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

The number of people affected by a UnitedHealth data breach in February 2024 was actually higher than previously reported and was the largest medical data breach in U.S. history.

A phishing campaign uses Google Calendar to schedule fake meeting invitations that appear legitimate, redirecting targets to phishing sites.

Toll road text scam: Fake messages claim unpaid fees, seek payment via fraudulent links. Kurt “CyberGuy" Knutsson says this scam is becoming increasingly sophisticated and widespread.

Kurt “CyberGuy" Knutsson says these steps ensure that your friends and family get to the exact moment you want them to see. Try it out and streamline your sharing experience.

Tech expert Kurt “CyberGuy" Knutsson offers tips on how to protect your identity: Be vigilant, monitor accounts, use smart security, know theft response.

Tech expert Kurt “CyberGuy" Knutsson says cybercriminals are exploiting iMessage phishing protection, tricking users to reactivate links.

It's hard to imagine life without in-flight Wi-Fi these days – but sky-high web surfing comes with its own set of privacy concerns. Here's how to protect yourself.

Over 400,000 cases of credit card fraud were reported in 2024 to the Federal Trade Commission. The CyberGuy explains how to protect against becoming another victim.

A nondescript metal box transforms into a fully functional electric motorcycle that blurs the line between vehicle and urban infrastructure.

Many apps unrelated to location still ask users for tracking permission, and Texas Attorney General Ken Paxton has filed a lawsuit seeking to end this alleged practice by Allstate.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Melody, the artificial intelligence-powered robot, is life-sized and represents a move toward creating robots that resemble people in appearance and interaction.

Here are five easy smartphone rules from the National Security Agency that you can follow to better protect your mobile device from hackers and scammers.

A U.S. robotics company has developed "Jennie," a robotic pet powered by artificial intelligence that's designed to comfort those facing mental health challenges.

Healthcare records for more than 184 million Americans were breached in 2024, but you can take steps to minimize that risk. Kurt the CyberGuy explains.

The Skyrider X1 from Rictor claims to be the "first amphibious flying passenger motorcycle," and it combines land and air travel in one sleek design.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Home inventory and restoration apps help itemize and track every item in your home in the event you have to make an insurance claim after a natural disaster.

The White House launched a new cybersecurity safety label, the U.S. Cyber Trust Mark, intended to help consumers make informed decisions on smart device safety.

Today's tech can help make life so much easier — if you know how to use it. Here are a few tips on the quickest and best ways to make your phone, laptop and other devices work for you.

Tech expert Kurt “CyberGuy" Knutsson offers Windows 11 restart fixes: Update drivers, run system scans and check hardware.

How Electronic Checks Work ? Will Paper Checks Eventually Go Away?

Personal Finance