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Give A Read To Know How ACH Is Different From eChecks
October 18th, 2021

Give A Read To Know How ACH Is Different From Electronic Checks.

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In today’s time, when digital processes have become increasingly transformative, it is witnessed that many businesses are shifting away from traditional banks and relying upon paper checks.
But somewhere, we do become confused in knowing how ACH payments can be different from eChecks. So, in light of understanding the right thing, this blog will allow you to explore the comparison between ACH and eCheck.

What are ACH transfers?

An ACH transfer is a kind of payment that enables businesses to send and receive payments through their online banking account.
One of the most common ACH transactions is ACH debit, and it is called the most common type of transaction type.
Even merchants can also initiate ACH credits, and all they need is to carry authorization to debit customers through bank routing and ABA.
The ACH transfers are highly beneficial for setting up recurring payments and can help in maximizing retention.

What are electronic checks?

Electronic checks are pretty different from ACH transactions because when customers use an electronic check, they initiate the bank transfer online.
They are significantly faster than manually processing physical checks.
When you are processing an eCheck, you will require routing and account numbers on the bank statement. In the case of a paper check, one can obtain authorization in written form. Whereas in eCheck, one can obtain through the ACH network.

What is ACH?

ACH is also known as the automated clearinghouse and is used to transfer money electronically between bank accounts across the United States. ACH processing is an electronic funds transfer. Whereas eCheck payment processing is the digital form of a traditional paper check and is also known as the electronic check, online check, and internet check.

Do you know the benefits of ACH Payment Processing?

As ACH payment can be processed faster through bank transfer, it provides reassurance that one can be paid more quickly. ACH payment processing options are classified as the convenient way to pay. Since your customers may want to make quick payments, this is one such process that boosts loyalty and increases customer retention.

Apart from being cheaper, faster, and more convenient, ACH payment processing also provides a secure money transfer gateway.

Read to know about the exact difference between ACH and eChecks:

ACH is a financial transaction process, whereas eCheck is a payment method. ACH is the process that is used to move money electronically from one bank to another. Whereas eCheck is an abbreviation of the term “electronic check” and it is used to replace different paper checks.

Electronic checks exhibit different transactions and are based on other businesses.
Their flow of information remains quite different.
They are considered suitable for consumers and merchants and allow different services and products to meet different needs and requirements.

ACH is the network that connects all banking and financial institutions within the United States and efficiently moves money and information between bank accounts. ACH processing allows one to use their bank account information to process payments. When you want to pay by the website, you must also provide an account and routing number. If a consumer wishes to pay the bill by website, he might be required to provide an account and routing number.

ACH is also used to post a credit to an account and is quite similar to direct deposit.
If a business is connected to an ACH merchant account, withdrawing payment directly from customers’ bank accounts can be possible.

On the other hand, eChecks work like regular paper checks and can be readily accepted through the phone and the Internet. eChecks are based on new technology and remained non-existent when ACH was introduced.


eCheck takes place digitally which speeds up the transaction process. eChecks can also be processed through the ACH network and are considered the most secure payment method.

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