Merchant Services

How electronic check payment processing works

Electronic Check Payment Processing

When businesses want to accept checks, they need to take on the hassle of keeping up with them, getting them to the bank, and hoping they’re good. When you make the move to electronic check payment, you avoid all of these hassles in favor of a system more akin to credit card processing. Here’s how it works:

Once you have an electronic check payment processing account set up, you’ll be able to take checks and scan them using some sort of imaging or reading equipment. This will grab the salient details from the customer’s check, which will then be forwarded with information about the merchant to the processor. Depending on the specifics of your merchant contract, the payment will either be guaranteed or confirmed with another source. At this point, you’ll get either an approval or rejection of the transaction.

If it’s approved, you print a receipt for the customer to sign and return their check, now voided. In a few days, they’ll see a debit on their statement and you’ll see cash deposited into your account. The same works with mail-in payments, except you don’t need to return the check, just store it for your records.


With electronic check payment processing, you gain all the convenience and safeguards of credit card processing while still being able to accept checks. You also gain improved cash flow and reduced exposure to fraud, loss, and other headaches.