How Electronic Check Processing Works

Electronic check processing is the means by which you can take a paper check and submit it for payment electronically instead of taking it to the bank. PaySimple provides an easy electronic-check processing feature that requires no expensive scanners or other hardware--you simply key in check information and submit the transaction.

The process is simple:

1. Notify
You must notify your customers that their paper checks will be processed electronically. You can do this in writing on your invoices, or you can post a sign with this information at your place of business. (PaySimple provides you with a sign for your business and a sample of proper notification text for your invoices )

2. Collect and Convert
When a paper check is presented as payment, it is converted to a one-time ACH-based electronic payment, with pertinent information regarding the customer's financial institution and account number captured. You then make an image for archival purposes, and destroy the original check once the transaction goes through.. (The PaySimple system provides an easy interface for entering the check information.)

3. Process
An ACH file is created and presented to your financial institution; the payments are processed through the ACH network, the customer's account is debited, and your account is credited. (PaySimple does this for you and provides an easy reporting screen that tells you the status of all transactions.)

4. Confirm.
Once your customers' accounts are electronically debited, the payment is listed on their bank account statements under "other electronic payments" or a similarly labeled area. The description will include the check number, amount, and the billing company name. (PaySimple even lets you send your customer a receipt for the transaction)